Keeping up with rivals drives people to start businesses, study finds
People motivated by relative status—wanting to match or exceed their peers' lifestyles—are significantly more likely to launch their own ventures, according to new research. The finding helps explain entrepreneurship patterns and could reshape how policymakers design startup incentives and economic mobility programs.
Originaltitel: Do positional concerns trigger entrepreneurial decisions? - Evidence from survey experiments
This paper analyses the relationship between positional concerns (i.e. relative income or status) and entrepreneurial intentions. Literature suggests that individuals with stronger positional concerns are often motivated to improve their economic standing by establishing their own business, as this may offer the potential for higher income and enable them to catch up with the income/consumption levels of comparable others. We use a series of tailor-made surveys to investigate how individuals' degree of positional concern relates to their future entrepreneurial intentions. The results suggest that individuals with higher positional concerns, particularly regarding monthly net income, the market value of a luxury car, or the market value of a luxury house or flat, tend to exhibit stronger entrepreneurial intentions. The results remain robust when controlling for individual characteristics, creativity, autonomy, and family entrepreneurial background as well as across alternative estimators and specifications.