The influence of start-up motivation on entrepreneurial performance

Abstract Predicting entrepreneurial development based on individual and business-related characteristics is a key objective of entrepreneurship research. In this context, we investigate whether the motives becoming an entrepreneur influence subsequent development. our analysis, examine broad range business outcomes including survival income, as well job creation, expansion innovation activities for up to 40 months after formation. Using self-determination theory conceptual background, aggregate start-up into continuous motivational index . We show – unique dataset German start-ups from unemployment non-unemployment that later performance better, higher they score index. Effects are particularly strong growth-oriented like activities. next step, three underlying categories term opportunity, career ambition, necessity individuals driven by opportunity perform better in terms activities, while ambition positively associated with survival, probability hiring employees. All effects robust inclusion large battery covariates proven be important determinants performance.