Start-ups’ Success, Entrepreneurial Work Motivation and ...

Master of Science
General Management
STATUTORY DECLARATION
I hereby declare that the thesis submitted is my own unaided work, that I have not used other
than the sources indicated, and that all direct and indirect sources are acknowledged as
references.
This printed thesis is identical with the electronic version submitted.
Linz, November 2017
Acknowledgements
To my mom and my dad.
I want to thank them for all their love, support, patience and help with my studies and everything
else in my life.
Abstract
The literature of the scientific written work about start-up success, entrepreneurial work
motivation and burnout symptoms has its main focus on start-up owners, their motivation and
stress factors as well as the possible resulting burnout symptoms. Furthermore, the main goal
of the master thesis is to analyze the question, if correlations do exist among start-up success,
entrepreneurial motivation and burnout symptoms and how they are influenced by each other.
In order to find a suitable data, questionnaires were elaborated. Based on these predefined
questions, computer-assisted telephone interviews were conducted with new Austrian start-up
founders.
According to the study, the results not only exhibit correlations between start-up success and
burnout symptoms but also between start-up success and entrepreneurial work motivation.
The meaning of this statement resides in the facts that the more start-up success will be
generated by entrepreneurs, the less burnout symptoms will occur. Additionally, the more start-
up success will be created, the more motivated entrepreneurs will be and therefore, will
approach certain corporate tasks.
founding motives, MBI
Table of Contents
1.3. Course of Action ...................................................................................................... 2
2. Theoretical Foundations .................................................................................................. 4
2.1.1. Start-up’s Innovation Process ....................................................................... 5
2.1.2. Influencing Factors of Start-ups..................................................................... 7
2.1.4. Business Financing and Funding ................................................................ 12
2.2. General Framework of Motivation and Stress ........................................................ 14
2.2.1. Motivation ................................................................................................... 14
2.3.1. Antecedents of Burnout ............................................................................... 23
2.3.2. Burnout Symptomatic .................................................................................. 25
3. Empirical Research ....................................................................................................... 32
3.2.1. Sampling ..................................................................................................... 35
3.1. Data Collection....................................................................................................... 36
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List of Figures
Figure 1: Source: following Volkmann et al. (2010), p. 68 (modified) ..................................... 5
Figure 2: Source: following Choker/Hentati (2013), p. 749 (modified) ...................................16
Figure 3: Source: following Jayawarna et al. (2011), p. 38 (modified) ...................................18
Figure 4: Source: following Shepherd et al. (2010), p. 74 (modified) .....................................24
Figure 5: Source: own figure.................................................................................................34
Table 1: Motivation Types and their Effects on Start-up Founders ........................................20
Table 2: Role Stressors ........................................................................................................22
Table 6: Three Dimensions of the MBI .................................................................................31
Table 7: Descriptive Analysis of the control, dependent and independent variables .............38
Table 8: Overview of the Model ............................................................................................39
Table 9: ANOVAa .................................................................................................................39
Table 10: Coefficientsa .........................................................................................................40
List of Abbreviations
cf. confer (compare)
MBI Maslach Burnout Inventory
n. y. no year
November 14, 2017 Stefanie Helten 1/56
1. Introduction
The following chapter discusses the introduction of the master thesis about the correlations
between start-ups’ success, entrepreneurial work motivation and the symptomatic of the
burnout disease. The introduction composes the problem definition about the master thesis’
topic, the research questions and objectives as well as the course of action.
1.1. Problem Definition
Due to the constantly augmenting number of start-up establishments and the simultaneously
involved operating work attainability, not only a greater extent of physical exhaustion, but also
the psychological health will suffer with the utmost probability. Concerning the existence of
different causes, individuals decide to become entrepreneurs. Examples of these causes are
the hope to contribute at the market or simply to follow their vision and mission of running a
flourishing start-up company. Unfortunately, entrepreneurs should be aware of being mentally
exhausted due to higher stress levels, more anxieties and uncertainties in the operating area
in the initial stages of becoming a successful entrepreneur. These facts may lead to severe
psychological diseases.1
Twenty years ago, studies were conducted with regards to correlations between entrepreneurs
and burnout symptoms. Thereby, positive relations have been investigated according to
various meanings such as the constitution of negative psychological outcomes of increased
stress occurrences of entrepreneurs.2
However, at the point when humans start acting and working as entrepreneurs, their work-life
balance will drastically change as a consequence of less time for themselves, less breaks to
degenerate and on the contrary, there will be a greater extent of workload. In addition,
entrepreneurs are aware of a large number of working hours and therefore, more physical
exhaustion, which will influence their health conditions. Nonetheless, they are mostly
neglecting the mental influence of a greater workload, less degeneration time and perpetual
existential fear.3
Consequently, the master thesis’ topic about finding correlations between the symptomatic of
the burnout disease and entrepreneurial success and work motivational factors ought to shed
light on the evolving importance of the awareness of too much work and the resulting negative
mental health conditions. Therefore, questionnaires have been made in order to collect data
1 cf. Hatak et al. (2015), p. 123 2 cf. Rahim (1995), p. 68 3 cf. Volery/Pullich (2009), p. 13
about motives, why individuals decide to establish start-up companies, the expectations they
have as well as their job pattern when working in a company. The gathered data will then be
used to investigate correlations and relations based on the analysis, in order to generate
prevention strategies for start-up owners in the preliminary stages.
1.2. Thesis’ Objectives and Research Questions
With reference to the above problem definition, the main objective of the master thesis is the
exhibition, if there are correlations between gaining entrepreneurial success in start-up
companies and the burnout disease as well as if there are correlations between job motivation
of start-ups and the previously mentioned psychological disease. Moreover, the thesis
elaborates the reasons why entrepreneurs may be more stressed in their preliminary stage of
start-up firms as well as which actions are taken in order to counteract or even to prevent not
only symptoms of burnout, but also the stress-feeling in general.
In respect of the proposed theoretical framework and the empirical research chapters, the
following research questions on the underlying master thesis’ topic, should be successfully
targeted and answered:
Research Question 1: What are the health consequences when striving for start-up
success?
Research Question 2: How does the level of entrepreneurial motivation impact on the
development of burnout symptoms?
Research Question 3: How does start-up performance change the role of entrepreneurial
motivations in the development of burnout symptoms among
founders?
1.3. Course of Action
Aside from the introduction the master thesis consists of three main parts, which declares the
problem definition, the thesis objectives and research questions and the course of action. The
first main chapter defines the theoretical foundations based on academic literature; the second
one declares the empirical research and the last two deals with the provision of the master
thesis’ discussion, limitations and conclusion.
The following part discusses the theoretical foundations, which can be divided into three
subparts. The first one defines the general framework of start-up companies, which should
give an overview of the theoretical composition of start-up firms including the definition,
differences regarding start-up companies and entrepreneurs. The process of becoming a start-
up, the influencing factors as well as their challenging aspects and financing and funding a
start-up enterprise are conducted too. The next segmentation displays the general framework
of entrepreneurs’ job motivation and the accompanying stress factors. Right at the beginning
of this subchapter, the different types of motivation are outlined as well as how it is possible to
achieve motivation within companies. Thereafter, the reasons of the stress occurrence and the
role stressors are observed in more detail with the last block focusing on the general theoretical
foundations of the burnout disease as well as the symptoms, antecedents and the various
stages which individuals undergo.
The second part of the thesis encompasses the empirical research of the master thesis and
the correlations between the burnout disease and job motivational and success factors. At first,
the hypotheses will be declared, which are used for detecting correlations based on the stated
research methods in chapter 3.2. Not only hypotheses will be indicated in this chapter, but also
the subject will be characterized in more detail and thereafter the accompanied control,
dependent and independent variables, which have to be used for conducting empirical
analyses. Afterwards, the whole data collecting procedure and subsequently, the collected
data will be analyzed. After elaborating the findings, the data will be applied by means of a
linear regression analysis, which composes a descriptive statistic, and analysis of the ANOVA
and coefficients. At last, the pending subtopic of this main part will constitute the explanation
of the found results of the analyses.
Ultimately, the final chapter captures all the results of the empirical research once more.
Among the last chapter, the discussion, the limitations and the conclusion of the written master
thesis’ topic about start-ups’ success, entrepreneurial work motivation and the symptomatic of
burnout will be exposed. Due to the analyzed results, the conclusion topic entails the
discussion, several limitations as well as the conclusion as a final settlement.
2. Theoretical Foundations
Theoretical foundations are necessary to be declared in advance in order to understand why
and which hypothesis will be used for the accompanying analysis and which results are made
out of the used datasets. Therefore, this topic is composed of three main subparts. The first
two subtopics explain the general framework of start-up companies as well as the general
framework of motivation in relation to the job and entrepreneurial motivational aspect and the
resulting stress symptoms. Finally, the last subpart of the theoretical foundations represents
the general framework of burnout.
2.1. General Framework of a Start-up
The first subchapter about the general framework of a start-up composes the start-up’s
innovation process, factors, which are affecting start-ups in general, start-up characteristics
and success factors, which will be explained more precisely later on. Thereinafter, start-up’s
challenging issues: chances, risks, benefits, and liabilities are declared more precisely.
Furthermore, the general framework of start-ups is round up with the start-ups’ financing and
funding possibilities. However, before the start-up is exhibited by the mentioned framework,
the following two definitions – entrepreneurs and start-ups – will be briefly defined in order to
understand the following passages of the general framework of a start-up business.
Definitions
The term entrepreneur has appeared in literature for more than twenty years and is
characterized as a person, who has to be more flexible in his/her working life as well as being
more open for possible frustration levels.4 Entrepreneurs should not exhibit a risk-averse
personal character due to the need in investing and inventing in highly new goods or services
to generate benefits. Entrepreneurs are owners of small businesses or incorrectly self-
employed individuals.5 The term self-employed is not declared as an equivalent to an
entrepreneur because self-employed individuals are not automatically entrepreneurs, but
entrepreneurs are acting in a self-employed way.6
The buzzword start-up can be used nearly synonymously for entrepreneurship. Although, there
are slight differences among these two terms. Start-ups can be described as special forms of
business formations, which are assumed of creating positive impacts upon the overall
economy such as effects of employment and growth or stimuli of innovation. Enterprises are
4 cf. Harris et al. (1999), p. 448 5 cf. Vollery/Pullich (2009), p. 4 6 cf. Vollery/Pullich (2009), p. 5
characterized as start-ups, which mainly focuses on innovative operations and on considerable
increases in turnover or employment and do not exist for more than ten years at the market.7
2.1.1. Start-up’s Innovation Process
As stated in the literature, the process of innovation is framed differently concerning to every
single company and therefore, several authors described the process in various phases, which
state different expressions but present similar meanings. The innovation process of start-up
companies can be described as a complicated approach, which varies from company to
company. The duration of the process widely differs regarding passing all the necessary
activities in each and every predefined start-up phase.8 However, the mission and vision of a
start-up firm will not be severely changed during the process. At worst, the idea of the business
will be just adapted during the process in order to fit to the company’s objectives. The first few
months of starting the operation expose to be the hardest and most difficult ones for any
entrepreneur based on an overloaded daily working time-table and unfortunately, the
possibility will arise to make wrong decisions regarding substantial duties in the management
sector.9
7 cf. WKO (2017), p. 1 8 cf. Schick et al. (2002), p. 61 9 cf. ibid.
Figure 1: Source: following Volkmann et al. (2010), p. 68 (modified)
Early
enterprise
Sustained
growth
Interdependence
Viable market establishments of the enterprise
Compared to the above written literature, the innovation procedure can be divided in three
main parts, namely in the conception phase, the start-up one and the phase of entrepreneurial
achievements of the market. These three phases are depicted in the figure afore.10
The first phase – the conception phase – can be subdivided into four stages. The initial one
depicts the business idea formation and together with the next stage regarding the opportunity
identification of enterprises, the innovation gets proven of being feasible at the market. Among
these two milestones interdependence does exist. Thereinafter, a business plan must be
created as well as the activities around the maturation of start-ups. Those outlined stages of
the conception phase should be carefully accomplished and defined before the company’s
market launch due to their significant character.11
After a successful passing through the first stage, entrepreneurs will face themselves in the
start-up phase. Within this one, the actual implementation of the enterprise takes place in
order to get known at the market and to gain importance in the mind of competitors. Not only
the mentioned institutionalization of the start-up will be generated but also internal operational
processes start to be executed. These include the finding of the best suitable resources and
boundaries to form the desired mission and vision of the enterprise. Additionally, first drafts of
plain organizational structures and the most valuable styles of the leadership management will
be accomplished.12
The third and last phase constitutes the entrepreneurial achievements of the market and it is
called the phase of viable market establishments of the enterprise. Concerning the following
three milestones – early development, growth and sustained growth – the final phase of
start-ups’ innovation processes is attained. The established market position of the company
will serve as the future growth’s fundamental foundation. Furthermore, there exists no
separated crossover between the second and the third phase of the process. Instead
companies will step to the last phase affluently and the same procedure will take place among
the three various stages of development and growth. In order to reach the predefined targets
of the enterprise about an efficient market launch, the early development stage’s duty displays
the generation of strong underlying organizational structures. Consequently, the organized
structures and the subsequent execution in view of strategic management are the basic
influential foundations of the growth stage.13 Companies have to think carefully and make clear
strategies, which exhibit an intentional purpose regarding the increase of the growth stage and
not a coincidentally one. Therefore, this final milestone is responsible for creating core
10 cf. Volkmann et al. (2010), p. 67 11 cf. Volkmann et al. (2010), p. 68 12 cf. Volkmann et al. (2010), p. 69 13 cf. ibid.
qualifications as well as for strategies to grow as fast as possible, which are feasible based on
ongoing changes about the underlying business strategies.14
2.1.2. Influencing Factors of Start-ups
Start-up Characteristics
The characteristics of start-ups or newly founded enterprises are constituted by new developed
goods, services or innovations in general. However, the distinctive definition of
entrepreneurship identifies and exploits opportunities and resources in order to generate
completely new properties or products and services. Further typical characteristics of new
enterprises are not only the profit-oriented way of operating businesses but also hazardous
and uncertain future prospects of the start-up company.15
Based on the written theory, a further view regarding start-up characteristics has its main focus
on the following represented four dimensions of business foundations:
person of business foundation
idea of business foundation
structure of business foundation
situation of business foundation16
The main and most important characteristics of a person of a business foundation is the
enormous quality, which should be subject-specific though, not deep-rooted in the specific area
and knowledge in establishing firms. Furthermore, the business founding idea strongly
depends on academic education, although, founding an enterprise will primarily take place on
a group basis. However, these team members probably became acquainted with each other
from the same academic background.17 The third dimension – structure of a business
foundation – expounds the non-essential application of corporate structures as well as market
researches. Therefore, business plans are not created sophisticatedly. Completing, the
founding situation exists based on private and public funding and is characterized due to
mainly regional market areas.18
Additionally, the literature about the ensuing composition of qualitative characteristics about
starting a completely new enterprise can be added not only to characteristics but also defined
as success factors.19 However, there are no real barriers of becoming an entrepreneur. Every
14 cf. Volkmann et al. (2010), p. 79 15 cf. Volkmann et al. (2010), p. 4 16 cf. Vetter (2011), p. 61 17 cf. ibid 18 cf. Vetter (2011), p. 62 19 cf. Scarborough/Cornwall (2016) p. 22
individual is able to establish a start-up firm but potential entrepreneurs have to bear in mind
that special qualities and characteristics are a precondition to conduct a business. Therefore,
the most important qualities of entrepreneurs comprise the company’s mission and vision as
well as entrepreneurial passion to succeed in operating businesses. Additionally, new founders
must have a thirst for actions and the ability to take risks, to innovate in order to enlarge the
business and to be able to cope with an extreme workload. Concluding, further essential
entrepreneurial qualities display the exhibition of working proactively, the unstoppable focus
upon customers and finally, having competences of group work, more precisely being open for
working with team members side by side.20
Success Factors
The following success factors of start-up firms can be explained based on moral, ethical and
honesty aspects. Moral describes the fundamental requirements of society’s cohabitation
which have to be obeyed. Besides, the claim of reliability, honesty and gratitude is especially
useful for political and economic leaders due to the fact that without honest employees or the
whole company in general, the enterprise will not operate successfully in the long run, although
there might be several short-term benefits. However, moral will generate confidence among
customers and a positive reputation as a result too.21 Further success factors are the contact
to existing and potential clients because customers are the best advisers referring to exploring
the needs and wants of the society. Therefore, no other individual will respond more truthfully
than the customer itself about their affectivities as well as desires. For each and every
entrepreneur, customer contacts are of an essential character.22 Additionally, the following
factor of generating success states the business plan’s numbers and figures which constitute
the framework of success. Therefore, the intended numbers’ and figures’ meanings have to be
understood by the company’s owners in order to generate and use them in an appropriate and
realistic way. The understanding belongs to the core competencies of the main tasks and
duties of the business management.23
Moreover, success factors can be further divided into three different types of variables, more
precisely in entrepreneurial traits of personality and psychology, entrepreneurial trainings and
abilities in management as well as in sets of variables about the external environment.24
Financial capital is not the only type of capital, which leads to success of start-up firms. There
are three additional ones which are characterized to contribute entrepreneurial success. These
20 cf. Scarborough/Cornwall (2016) p. 28 21 cf. Nagl (2015), p. 275 22 cf. Nagl (2015), p. 276 23 cf. Nagl (2015), p. 277 24 cf. Benzing et al. (2009), p. 62
three constitute the social capital, the human and the reputational one. Social capital can be
described as embedded resource in societal relationships. This outlined type of capital has
been reasoned in terms of socially structured relationship norms as well as in created
networks. Abilities and knowledge of individuals can be characterized as human capital and
can be used for solving upcoming problems, executing technological strategies or
entrepreneurial duties in general. The reputational and also third capital belongs to the key
success factors of an entrepreneur due to charismatic and sincere traits and the need of
provided quality service.25
Additionally, to boost a company’s performance even further, knowledge-based resources
have been generated to make that possible. These resources will gain in importance in order
to supply a sustainable advantage due to its difficulty to copy them. Therefore, the fact of
supporting the unceasing specialization is a substantial issue of generating an enterprise’s
capability to act in an entrepreneurial way and to increase the performance of a company.26
Furthermore, a firm’s performance is positively influenced by an entrepreneurial orientation,
which illustrates that innovativeness; risk-taking and being proactive are combined with each
other. Thus, the more willing entrepreneurs expose to be in operating proactively, risky and
innovatively, the more positive the relationship between knowledge-based resources and the
entrepreneurial performance will be.27
2.1.3. Challenging Aspects of a Start-up
The next subchapter of the framework about start-up businesses contains the following
challenges, which are faced by entrepreneurs:
Chances
Two of the most important aspects about capturing chances concerning the establishment of
a new enterprise are the one of having great personal freedom as well as the possibility of
fulfilling one’s own company’s vision and mission. Additionally, as a result a wider range of
objectives will be initiated such as social reputation, prosperity and power. Taking chances will
have positive effects when entrepreneurs fully identify themselves with the start-up idea.28
Finally, capturing chances will lead to the next following challenging aspect in being aware of
risks and also in being prepared to take them otherwise chances will not be put into practice.
Risks
25 cf. Zimmermann/Chu (2013), p. 79 26 cf. Wiklund/Shepherd (2003), p. 1307 27 cf. Wiklund/Shepherd (2003), p. 1312 28 cf. Küsell (2006), p. 20
Normally, risks can be declared as disadvantages of companies. When individuals decide to
open up their own business, risks are automatically adhered for new entrepreneurs, who
always have to be aware of non-predictable, hazardous occurrences.29 Risks can be further
depicted as being the opposite of chances, which means that risks are mostly defined as
having a negative character, which has been previously mentioned. Certainly, there are huge
differences regarding risks when being an employee of an enterprise or being the entrepreneur
itself.30 Start-up founders do not have the same social security system as employees do. It is
quite difficult for entrepreneurs to protect themselves financially and economically by way of
example in the event of illnesses, insolvencies or in the event of being unemployed. The factor
of having luck is inseparable with the associated risk factor of a new established company. As
the unpredictable future exhibits an unsecure aspect regarding decision making, the right
decisions always concern with having luck. In addition, risk can be reduced in a certain extent.
It can be declined by having precocious contact with potential and existing customers or by
making fix costs at a minimal expense as well as by planning the start-up’s structures and
strategies as detailed as possible. Besides, the right insurances are also one of the most
significant aspects.31
In conclusion, a good reputation of the start-up and investors’ confidence in the start-up will be
established and rise when the potential risks are shown to them in advance. By virtue of the
risks descriptions, the entrepreneur declares the business plan not only as well-conceived, but
also as realistic. Therefore, there should be made a list about the potential and existing risks
as well as the approach of how to counteract these mentioned dangers.32
Benefits
Benefits can be presented in a wide variety of literature and by reference to various authors.
A benefit characterizes itself concerning entrepreneurs, who are more into the work and
therefore, it boasts a more intensive working style than employees. Moreover, entrepreneurs
are more flexible and satisfied in their doing too. Additionally, start-up founders will get the
possibility admitted of being responsible for generating their own fortune.33 Into the bargain,
there is not merely a greater feasibility in creating differences regarding environmental, social
and economic goals for societal milieus and successful enterprises,34 but rather the possibility
for self-fulfillment and self-realization. The more creative, motivated and enthusiastic
29 cf. Alstete (2008), p. 589 30 cf. Küsell (2006), p. 21 31 cf. Küsell (2006), p. 22 32 cf. Volkmann et al. (2010), p. 156 33 cf. Scarborough/Cornwall (2016) p. 28 34 cf. Scarborough/Cornwall (2016) p. 29
entrepreneurs are, the greater and more successful the outcome of the company will be.35 The
theoretical contribution further pointed out that it is absolutely crucial for entrepreneurs when
they are operating on a local basis and therefore, contribute to the local society. Additionally,
one of the start-up founders’ most substantial benefits are exhibited in having fun and enjoying
the work they are doing and the word work can be nearly simultaneously used for pleasure.
Effective and efficient entrepreneurs emerge by being interested and definitely satisfied in their
company’s mission and vision.36
To summarise, based on the literature the great independence feeling of entrepreneurs is
numbered among the most essential driving forces and advantages regarding starting an own
enterprise. Moreover, being stated as your own boss means not only more freedom in the
decision-making process as well as choosing when to work and where to work, but also which
leadership style exhibits the most efficient aspect in gaining potential employees and
customers and also through which corporate structures and strategies. Several young
entrepreneurs made the decision of establishing their own start-up due to the fact of the
accomplishment about their satisfaction and their self-fulfillment.37
Liabilities
This chapter regarding liabilities of start-up companies can be classified based on three
different types, namely by means of liabilities of smallness, liabilities of newness as well as of
liabilities of adolescence. The liability of smallness occurs in virtue of the scarcity of an
appropriate amount of capacities and recourses, more precisely in funding and staff. Aside
from that, the fact of the missing start-up’s reputation and the information needed to plan
structures and procedures in the right way makes it even harder to stand the competitors or
established firms and consequently, gathering resources regarding human capital and
financing.38
The next one – liability of newness – is declared as being one of the main negative aspects,
which results in failing young enterprises.39 As declared in the liability of smallness, this
mentioned liability is accomplished concerning an inefficient amount of particular capacities
and resources as well, which are discovered in long-run companies. Furthermore, the
presence of the liability of newness not only exists due to missing routinely experiences and
practices, but also referring to relations among the society’s lack of created trust respectively
to new established firms. Doubtless, these trust relationships of start-ups seem much more
35 cf. Scarborough/Cornwall (2016) p. 32 36 cf. Scarborough/Cornwall (2016) p. 33 37 cf. Alstete (2008), p. 588 38 cf. Volkmann et al. (2010), p. 26 39 cf. Morse et al. (2007), p. 139
uncertain than the ones of established enterprises. Besides, a further explanation about this
type of liability exhibits the scarce likelihood in generating new innovations.40
In comparison to the liability of newness’ fear of initial failures of the start-up, the liability of
adolescence’s risk of the company’s dying is kept very low at the beginning and will rise during
the persistence of the start-up over time till the adolescent point is reached. The occurrence of
the explanation above emerges based on external and internal resources such as human and
financial capital. At the threshold were all supports are consumed and exhausted, the anxiety
of going bankrupt and losing the new built establishment increases.41
2.1.4. Business Financing and Funding
With reference to the difficulty of having a sufficient amount of available financial means, the
ensuing types of financing and funding should help to understand, why these aspects could
lead to severe problems not only for start-up firms but also for early established businesses in
general.42 The financing and funding chapter distinguishes between equity financing, debt
financing and financing with mezzanine capital.
Equity Financing
In order to finance the established start-up without any capital borrowed, entrepreneurs are
able to apply equity to fund the start-up’s operating activities. For this reason, it is possible to
surrender the entrepreneur’s property right of the company to business angels or venture
capital.43 Besides, equity financing can be divided into internal and external sources of
financing, which depends on the different stage where the single start-up is situated at this
particular time. The more private equity a start-up possesses, the better the company’s
solvency and the higher the chance of getting debt capital afterwards if any is needed.
Moreover, the liquidity rate of the start-up will be boosted as well, when more private equity
will be inserted at the beginning. By the way, the acquisition of the capital is ordinarily
accomplished internally on the basis of the partner’s investments; however, it can be ensued
externally according to venture capital44 or business angels.45
Venture capital constitutes itself as a significant and necessary source of capital in the early
stages of start-up businesses.46 Furthermore, venture capital associations engage in listed,
young and technology-based enterprises, which have an insufficient amount of securities of
40 cf. Morse et al. (2007), p. 141 41 cf. Volkmann et al. (2010), p. 26 42 cf. Korosteleva/Mickiewicz (2011), p. 23 43 cf. Hotz-Hart/Rohner (2014), p. 107 44 cf. Hahn/Naumann (2014), p. 130 45 cf. Hotz-Hart/Rohner (2014), p. 107 46 cf. Hahn/Naumann (2014), p. 130
applying for debt financing. Unfortunately, these contributions are accompanied with high risks
which could lead to total losses of the appointed capital. Nevertheless, if the company is
generating profits, the venture capital associations will receive the possibility of getting high
yields. Another opportunity in getting external equity are the so-called business angels, who
will support start-ups regarding funding their businesses in the early phases. Business angels
include individuals, who dispose a high amount of experiences pertaining to entrepreneurship,
the respective industry or the sufficient financial means. These persons act as advisers and
facilitators due to their knowledge. In addition, business angels not only desire achievements
of high yields, but also the accomplishment of an important level of personal satisfaction in
respect of leading start-ups to write black figures.47
Debt Financing
Compared to the above explained equity financing, debt financing entirely consists of borrowed
capital. Normally, this capital derives from banks and deals are not just made of interests, but
out of granting credits against further services and securities. Furthermore, start-up firms
usually will not subscribe for loans before the expansion phase due to their invested private
equity.48 Bank loans, trade credits, bonds or prepayments of customers can be ranked among
debt financing. Finally, debt financing wholly consists of borrowed capital.49 By the way, the
typical credit describes the provision of cash and cash equivalents by suppliers, credit
institutions or through customers’ prepayments.50
Mezzanine Capital
Mezzanine capital is described as a financing instrument, which is an intermediate form of
equity and debt capital and displays traits of both forms of capital used. Moreover, the specific
traits of either form of financing can be adapted on the intended risks of the start-up.51 With
regard to the used financing form, different circumstances will arise, such as the increased
investment risk by using more private equity. Although, the achievable yield will be enhanced
as well. On the other hand, if there is more debt capital in use, the risk regarding investors will
decrease and nevertheless, the yield will also shrink at the same time.52 Benefits of mezzanine
capital constitute the fiscal deductibility of remunerations, the prevention of ownership
47 cf. Hotz-Hart/Rohner (2014), p. 108 48 cf. Hotz-Hart/Rohner (2014), p. 107 49 cf. Wirtschaftslexikon24 (2015), p. 1 50 cf. Guserl/Pernsteiner (2015), p. 70 51 cf. Eilenberger/Haghani (2008), p. 85 52 cf. Hahn/Naumann (2014), p. 167
structures’ alterations, the prevention of typical debt financing and in the improvement of
solvencies of borrowing.53
2.2. General Framework of Motivation and Stress
The following subtopic about the framework of motivation and stress contains the explanations
of job motivation as well as how entrepreneurial motivation will be achieved within a start-up
business. The final part discusses the factors about stress. More precisely it will exhibit the
reasons of the occurrence of stress and the role stressors, which consists of three further
components, namely of role overload, role ambiguity as well as of role conflicts.
2.2.1. Motivation
Job Motivation
According to various literatures each and every nation of the world defines their job motivation
in a unique way. Entrepreneurs of America are motivated in their job by an urge of a great
independence feeling. On the other hand, Asian countries not only seek for new challenges
and accomplishments but also for motivating factors such as growth and being satisfied
individually. These are their greatest job motivators, although, there are huge differences
among nations situated in Asia as well. Comprising, the Eastern World’s motivational factors
consists of the desire of generating as much profit as possible, whereas, the Western World
tend to seek in their attitudes of personal satisfaction and independences.54 By the way,
numerous start-up founders wanted to be their own chief, which seems to be one of the most
essential aspects of becoming an entrepreneur.55 Additionally, motivation can be distinguished
between external and internal factors, which do affect entrepreneurs. Apart from that, four
sections, in particular security of the family, autonomy and independence, as well as rewards
can be pointed out referring to extrinsic and intrinsic aspects.56. Underlying factors could not
only be the field of psychology, but also economic, socially and emotional reasons.57 By the
way, motivation has been analyzed based on “pull” and “push” factors as well, which are
described below.58
Pull factors can be classified as the attraction of wanting to be one’s own boss, to work
independently and also to fulfill and describe oneself. Additionally, factors such as being
financially independent, seeking for new challenges and financial possibilities can be counted
53 cf. Guserl/Pernsteiner (2015), p. 403 54 cf. Chu et al. (2011), p. 87 55 cf. Baycan-Levent/Kundak (2009), p. 296 56 cf. Zimmermann (2013), p. 78 57 cf. Choukir/Hentati (2013), p. 747 58 cf. Choukir/Hentati (2013), p. 746
to pull factors too. Pull factors are likewise known as intrinsic factors due to their meaning and
description of individuals’ needs and wants, characteristics and personal features which are
formed by the society.
In comparison to the pull factors, the push factors are the main entrepreneurial motivating
aspects regarding extrinsic factors such as job losses, enduring unemployment, job layoffs or
the finding of a job in general. Consequently, individuals, who are motivated via push factors,
decide to start their own business to escape these mentioned aspects above. Nevertheless,
the factors regarding work-family balances often fall into oblivion or will be neglected by
many authors. However, it was explored that such factors bear a huge meaning for female
individuals. Besides, there exists not only the attracting possibility of more flexible working time
and a balanced work-life situation, but also the motivation coming from the family in a general
sense. These tend to be greater motivators for female entrepreneurs.
The emotional factors are the last-mentioned ones in the figure 2. At this point, intrapersonal
skills play a significant role in emotional processes. The procedures of emotional motivation
will start after forming intrapersonal processes,59 where individuals reveal specific stimuli and
also recognize their senses. As a result, these persons perceive the experiences of changes
in the psychological field as well as their ensuing repercussions regarding behavior, mindsets
and acknowledgement.60
Finally, in order to generate the motivation of entrepreneurs, all factors stated above are
subjects to enhance the motivation for new founders. Although, not every factor is weighed in
the same way as others are due to demographic and social backgrounds. Furthermore, the
success of the society and economy is created according to which extend motivational factors
– pull factors, push factors, balance factors or emotional ones – are sustainable by an
entrepreneur. Besides, the pull and emotional factors can be ranked among the most
significant determining factors, which effect social and economic benefits.61
59 cf. Choukir/Hentati (2013), p. 747 60 cf. Choukir/Hentati (2013), p. 748 61 cf. ibid.
Achievement of Entrepreneurial Motivation
In order to achieve and enhance motivation of entrepreneurs, economic factors have to be
considered because they are accompanied with motivation of all kinds regarding to young
founders. Therefore, outlined concepts of entrepreneurial motivation such can be created,
which are interrelated with each other and are occasionally changing due to the ongoing
always and fast altering economy and environment. The need for achievement, having control,
gain in economy, better social status and personal development as well as the greater
possibility in creating new ideas and innovation can be ranked among concepts of
entrepreneurial motivation. These concepts profile three connections. The first one is named
the career life course and represents the career of individuals, which is featured by educational
skills, the family itself as well as by gained experiences of work. Consequently, entrepreneurs
will gain the possibility to affect the needed resources and choices made about the
occupation.62
The household life course presents the next concept and characterizes reproduced resources
which can be consumed and are provided by roles of individuals. Subsequently, the capacity
of entrepreneurs’ labor as well as the economic motivation will be influenced. Finally, the
resource mobilization and results of the enterprise based on an individual’s experiences
compose the business life course and have an influence on likely future performances’
cognition and resources.63
based on theories about social-psychology, psychology in general, economy and cognitive
62 cf. Jayawarna et al. (2011), p. 35 63 cf. ibid
Balance factor
values. In particular, motivation of entrepreneurs is positioned in the framework comprised of
courses of households, careers and business lives. Additionally, positions in social structures
such as ethnicity, social classes as well as age and gender portray possible and restricted
circumstances of individuals. By the way, motivation of entrepreneurs will be enhanced by
context alterations of household, business64 and career life courses. In addition, due to actions,
which will be motivated, the contexts of all three courses – career, household and business life
– get transformed or converted. For example, the wish for working independently through
establishing an own business will boost and effect decisions according to career or education
within the life course of career. On the other hand, the business life course has influences on
motivation gained through the desired generated benefits of the economy and the resulting
business strategies. Within the life course of households, individuals’ wish to establish a start-
up may cause the fact of settling down to family life at a later date.65
Relations between contexts of life courses and motivation cannot be seen as being
mechanistic due to continuous readjustments of motivations in case of altering living conditions
of entrepreneurs. These changes create new enlightenments or similarly, will not get any
attention. All in all, it is possible to generate complements regarding all the mentioned types of
life courses in the paragraphs above, which will motivate entrepreneurs in certain extents and
consequently, it is shown that there definitely exist connections between the three courses of
life, entrepreneurial motivation and actions of businesses.66
64 cf. Jayawarna et al. (2011), p. 37 65 cf. ibid. 66 cf. Jayawarna et al. (2011), p. 37
Compared to the literature above, the table below states six distinct types of motivation and
should shed light on the effects on entrepreneurs. Besides, these motivational types
characterize and summarize the achievement of entrepreneurial motivation.67
Type of Motivation Effects on Start-up founders
Need for Achievement The theoretical concept around the need for achievement exists till
the 50s. It implies that start-up founders with a high need for
achievement intend to be more suitable and qualified to operate in
activities, which are more time-consuming and energy-sapping
instead of individuals with a character that exhibit a low need for
achievement. By the way, people with a high achievement need
67 cf. Shane et al. (2012), p. 262
Business life course
early establishment stage
P o
s it
io n
i n
s o
c ia
l s
tr u
c tu
re s
Figure 3: Source: following Jayawarna et al. (2011), p. 38 (modified)
present the ability in being more responsible for results of corporate
actions.68
Risk Taking Taking a risk can be characterized as one of the most relevant
motivation types and entrepreneurs, who manifest a high degree of
needs for achievements, will probably show moderate tendencies
in risk taking. In the context of start-ups, new enterprises are
associated with uncertainty in business actions and therefore,
young founders have to be aware and accept the potential
uncertain circumstances respectively to the work-life balance,
financial outcomes, the personal psychology and the safety of
one’s own career.69 Besides, entrepreneurs are characterized as
being more prepared to take risks than the society in general.70
Ambiguity Tolerance Due to the unpredictable nature of start-up businesses, the
tolerance of ambiguity’s traits appears to be a substantial factor in
motivating entrepreneurs. Furthermore, the tolerance for ambiguity
makes it feasible to start-up founder to see unclear situations and
results rather as a positive event than a negative one.71 Beyond,
the influence of ambiguity tolerance can be found in each and every
phase of entrepreneurial processes.72
Goal Setting Locke’s goal setting theory of motivation states that predefined as
well as efficient, specific and clear objectives make it possible to
perform and operate tasks and duties in the best feasible way.
These determined goals not only have to represent a viable
character, but also a challenging one. Furthermore, it is essential
that targets are not too easy to be achieved, but neither too hard.73
If all in advance declared requirements about the objectives are
fulfilled, employees will then feel the urge for finishing their duties
and tasks as efficient and fast as viable. Additionally, employees
will enormously advance their professional motivation and their
way of working.74 Furthermore, entrepreneurs boast the character
68 cf. Collins et al. (2004), p. 96 69 cf. Shane et al. (2012), p. 263 70 cf. Shane et al. (2012), p. 264 71 cf. ibid. 72 cf. Shane et al. (2012), p. 265 73 cf. MSG (n. y.), p. 1 74 cf. MSG (n. y.), p. 2
of gaining benefits in enhancing innovation; growth as well as
quantitative objectives and these were in relation to their
associated results.75
Self-Efficacy “Perceived self-efficacy refers to people’s beliefs about their
capabilities to exercise control over their own level of functioning
and over events that affect their lives.76
More precisely, this definition means that entrepreneurs with self-
efficacy represent confidence in themselves regarding specific
duties and tasks. Furthermore, having a great extent of self-efficacy
will simultaneously characterize a better ability in perseverance
due to negative feedback as well as in setting higher objectives and
generating better structures and strategies.77
Locus of Control The final trait of motivation – locus of control – completes the six
stated motivation types regarding the achievement of motivation.
The locus of control explains to which extent entrepreneurs have
faith in their personal traits and actions as well as what will
influence and lead to the desired business results.
By the way, it can be distinguished between internal and external
locus of control. Whereas individuals characterized with internal
locus of control believe in themselves in affecting the results with
their personal characteristics and actions made, entrepreneurs with
an external one have the feeling that the made results are out of
their area of control.78
Table 1: Motivation Types and their Effects on Start-up Founders
2.2.2. Work-related Stress
Initially, the “buzzword” stress makes use of the following definition of depicting psychological
and physical causes, which affect the human well-being.79 Furthermore, stress explains “[…]
a function of discrepancies between one’s expectations and one’s ability to meet demands,
and discrepancies between the individual’s expectations and his/her personality. When one is
unable to fulfill one’s role demands, stress occurs. To the extent that entrepreneurs’ work
75 cf. Shane et al. (2012), p. 266 76 Ajzen (2002), p. 667 77 cf. Shane et al. (2012), p. 266 78 cf. Shane et al. (2012), p. 265 79 cf. Kakkos/Trivellas (2011), p 413
demands and expectations exceed their abilities to perform as venture initiators, they are likely
to experience stress.”80 In other words, stress is noticed and occurred by elevated levels of
risks, enormous workload and definitely by an urgent and huge achievement need.81
Beyond, stress is further distinguished between positive stress effects – eustress – and
negative effects – distress. Whereas eustress generates euphoria, distress causes negative
outcomes like dissatisfaction, dissonances and diseases. In other words, eustress represents
effects, which are desirable and on the other hand, distress exhibits unpreferable ones.82
By the way, new start-up founders are characterized as being more in charge respectively to
every company’s activity and occupying several roles and also described as lone workers with
less assistance of fellow workers. Besides, they are responsible for their operating faults and
therefore, also for their negative results. Consequently, it is obvious that entrepreneurs may
result in more stress than employees of the society due to the greater relevance in decision-
making processes, responsibility of the whole start-up as well as the extent of operating tasks
and duties.83 Stress can be further explained as being the outcome of stressors, which means
that the greater the extent of stressors, the more stressed human beings will be.84
Role Stressors
Role stressors consist of three different types – role overload, role ambiguity and role conflict
and they can be seen as positive or negative impacts on humans.85 Furthermore, stressors
which inhibit performances of specific occupational roles may have impacts on welfares not
only of entrepreneurs but also on each and every human being.86
80 Buttner (1992), p. 224 81 cf. Chu et al. (2011), p. 90 82 cf. Selye, (2013), p. 15 83 cf. Cardon/Patel (2013), p. 2 84 cf. Kakkos/Trivellas (2011), p. 414 85 cf. Singh et al. (1994), p. 559 86 cf. Frone et al. (1995), p. 2
Role Stressors Effects on Start-up founders
Role Overload The overload of roles is generated due to incongruence’s in
expected roles and the human beings’ motivation of task
performances as well as their skills to perform them.87 Furthermore,
it is quite possible that start-up owners will result in role overload in
respect of being new at the market and getting to know perceived
possibilities in making business.88
stakeholders’ criteria such as expectations, priorities and
evaluating outcomes, characterizes the role ambiguity.89 In
conclusion, the role ambiguity defines the lack to which extent
information seems to be clear regarding role expectations.90
Role Conflict Role conflict emerges not only due to incongruent communication,
which is experienced differently by entrepreneurs, but also
regarding mismatched amounts of perceived commitment and
roles of demands.91 All in all, the role conflict is represented by
associated role expectations, which display inconsistencies to a
specific degree.92
Table 2: Role Stressors
Finally, the three different role stressors – role overload, role ambiguity and role conflict –
constitute stress on a chronically basis and are dominant in the whole realm of work. Besides,
these stressors are affiliated to psychosomatic medicine, psychological liabilities and other
results regarding human health.93 Additionally, stressors such as dissonance on an emotional
basis or heavy workloads may result in the need for more recovering processes and
unfortunately, in emotional and mental exhaustion and stressors of jobs will augment the
exhaustions even more.94
87 cf. Singh et al. (1994), p. 559 88 cf. Wincent/Örtqvist (2009), p. 227 89 cf. ibid. 90 cf. Singh et al. (1994), p. 559 91 cf. Wincent/Örtqvist (2009), p. 226 92 cf. Singh et al. (1994), 559 93 cf. Parasuraman et al. (1992), p. 340 94 cf. Sonnentag et al. (2010), p. 355
In order to prevent negative outcomes of stress, a stress management should be considered
by entrepreneurs such as supporting the society to moderate work stress or stress in general.
Moreover, a greater level of locus of control exhibits better chances in counteracting stress
based on entrepreneurs’ willingness in using remedies more efficiently or by having the feeling
of being in control of the whole business will lead to less anxiety and stress as well.95
2.3. General Framework of Burnout
The following and final subchapter of the theoretical foundations will declare the concept about
burnout. First of all, the definition of burnout is stated and thereinafter, the antecedents of
burnout as well as the burnout symptomatic are exhibited in this chapter. The final part will
show, which phases do exist regarding burnout and also based on which methods burnout can
be measured. In this case, the MBI written by MASLACH will be represented to clarify the
measuring process.
Definition
“The term ‘burned-out’ is closely related to […] the following terms: alienated,
indifferent, apathetic, cynical, discouraged, mentally and physically exhausted, and
overwhelmed by stress.”96
In other words, the consequences of physical and mental overloads as well as liabilities will
result in burnout syndromes. The profession is not always the reason for it, but personal and
private overloads could be the cause too.97 In reaction to job stressors, burnout is also
characterized as a syndrome of psychology and result of cynicism, exhaustion and lack of
success.98 Additionally, burnout is represented as a long-term aftermath of stress as well owing
to an enduring overstressing, which cannot be overcome successfully by the person
concerned.99 All in all, burnout can be seen as a kind of stress that may cause chronicle
disease.100
2.3.1. Antecedents of Burnout
Burnout can arise due to several reasons and exist for a long time. Psychoanalysts define
burnout as a complex of medical conditions, which distances itself from psychological diseases
and occurs from overloads of social activities.101 Furthermore, burnout emerges out of
95 cf. Chu et al. (2011), p. 91 96 Zastrow (1984), p. 143 97 cf. Gesundheit.gv.at (2014), p. 1 98 cf. Leiter/Maslach (2004), p. 93 99 cf. Hillert/Marwitz (2006), p. 150 100 cf. Cordes/Dougherty (1993), p. 625 101 cf. Brühlmann (2007), p. 901
syndromes according to dimensions of a multiple sort such as depersonalizing, exhaustion on
an emotional basis and personal accomplishment, which is sank to a minimum.102 Burnout is
the result of feeling chronically stressed too, which goes along with certain professions.103
Further three categories of antecedents can be analyzed, in particular job and role
characteristics, organizational characteristics and personal ones. Job and role characteristics
affect humans negatively and may cause burnout. This can happen for example due to long-
standing customer inconveniencies and problems. Besides, the above defined role stressors
in chapter 2.2.2. – Role overload, role ambiguity and role conflict – will lead to the psychological
disease as well, which means that the higher the degree in displaying these role stressors, the
more likely burnout will be caused.104
Characteristics regarding the enterprise are constantly changing according to the unstoppable
growing breath of vocational sectors. Therefore, factors, which are facing rules, hierarchies,
strategies and resources of large organizations, are definitely associated with potential burnout
illnesses. In addition, forces such as the society, culture, and economy will frame the
organizational context too.105 The third characteristic – the personal one – can be represented
based on different traits of personality. Individuals who manifest high resilience such as being
open for unexpected changes, having everything under control and manage day to day
operations are more resistant in getting diseased by burnout, which can be seen in the figure
about the general model of burnout below.106
102 cf. Low et al. (2001), p. 589 103 cf. Sheperd et al. (2010), p. 73 104 cf. Cordes/Dougherty (1993), p. 628 105 cf. Maslach et al. (2001), p. 409 106 cf. Maslach et al. (2001), p. 410
General Model of Burnout
satisfaction
Figure 4: Source: following Shepherd et al. (2010), p. 74 (modified)
2.3.2. Burnout Symptomatic
The following complex of themes – burnout symptomatic – can be declared based on
numerous approaches. Therefore, the ongoing two different types stated below are written by
distinct authors and should shed light on the sophisticated topic that only one approach doesn’t
exist, but also plenty of various ones in the society.
Symptomatic according to CHERNISS
Symptomatic according to BURISCH
The first approach is represented by CHERNISS’ three stages, which are characterized as a
consequence of a transactional process. At the beginning the person concerned faces stress
and if this person will not learn to deal with those stressful circumstances, the following three
stages will emerge.107
Table 3: Symptomatic according to CHERNISS
On the contrary to CHERNISS’ model above, BURISCH defines the symptomatic by reference to
seven specific phases, which are inseparable and are able to intertwine. Hence, it is obvious
that the phases cannot be separated from each other.109 Naturally, it is not the case that each
and every symptom has to appear in order to be declared of having burnout.110
107 cf. Cherniss (1980), p. 12 108 cf ibid. 109 cf. Burisch (2006), p. 25 110 cf. Burisch (2006), p. 27
Symptomatic according to BURISCH111
a) excessive usage of energy
hyperactivity
restriction of social contacts of clients
b) exhaustion
lack of energy
not sleeping in
disillusionment
greater distances to clients
shunning of client contacts
focus shift from help to supervision
clients will be blamed by having problems
greater acceptance of means of control such as punishments or tranquilizers
Stereotyping of clients, customers, pupils etc.
emphasis on vernacular
inability of giving
cynicism
permanent looking at the clock
imagination of escape
antedated end of work
greater importance on tangible conditions for job satisfaction
d) increased claims
sense of lacking appreciation
sense of getting exploited
emotional reactions; accusation
propensity for crying
pessimism, fatalism
blaming others
depletion a) of cognitive effectiveness
lack of concentration and defects of memory
inability of dealing with complex tasks
inaccuracy
disorganization
b) of motivation
flattening of emotional reactions
less personal condolence of others or excessive bonding of individuals
shunning of informal contacts
shunning of conversations about one’s own work
taking an independent line
abandoning hobbies
insomnia
nightmares
headache
hopelessness
2.3.3. Burnout Phases and Assessment
This chapter should shed light on which phases individuals go through when getting ill by
burnout. More precisely, it will represent how burnout will emerge step by step and in order to
explain the process in more detail, the measurement and measuring instrument Maslach
Burnout Inventory, in short MBI, of the psychological disease will be declared as well.
Burnout Phases
The psychological illness constitutes a prolonged and slinking process. Besides, each and
every phase is allocated by symptoms and BURISCH defined it with the below stated authors in
the following way:
1st phase: occupational stress
emotional disconnection
Burnout Phases according to MASLACH113
1st phase a) emotional exhaustion
tiredness when thinking about working
b) physical exhaustion
2nd phase: dehumanization
negative feelings on behalf of patients/clients
guilt feelings
avoidance of troubles
3rd phase terminal stadium
reluctance against everything
Three-Component MBI
The following three-component Maslach Burnout Inventory, in short MBI, was created out of a
scale with 47 items, which was reduced to a 22-item scale later on.114 Furthermore, the MBI
was invented in order to assess and measure the burnout, more precisely, in which phase’s
patients are situated.115 Therefore, burnout will be defined according to the following three
subscales or characteristics as other authors defined them in the past: 116
1. Emotional Exhaustion
3. Personal Accomplishment117
In this way, the three mentioned characteristics will sum the total values of frequency and
intensity scales and based on the median, which are generated by the aggregated value made
from these three scales, burnout will be classified in high or low levels.118 More precisely, the
113 cf. Burisch (2006), p. 40 114 cf. Leiter (1993), p. 238 115 cf. Schaufeli et al. (2009), p. 211 116 cf. Enzmann/Kleiber (1989), p. 76 117 cf. Brühlmann (2007), p. 901 118 cf. ibid.
MBI assess if there are high or low scores regarding burnout and not if an individual possess
burnout per se.119
of being emotionally exhausted and overstrained through contacts
of customers, clients or recipients in general.120
Depersonalization Depersonalization signifies apathetic or callous reactions in relation
to humans, which represent recipients of welfare or services.
Moreover, such individuals who are suffering from this second
dimension will make use of depersonalized sensations of duties,
tasks or customers.121
Personal
Accomplishment
The third and last dimension of the MBI is explained by insufficient
feelings of competences and assessments regarding working
successfully with colleagues or employees. The person concerned
will operate in a more negative, impersonal, cruel or even in a
cynical way.122
Table 6: Three Dimensions of the MBI
After the theoretical input, the empirical research follows in order to use the theory to test, to
analyze and afterwards to interpret the collected data. Consequently, the literature written in
the first main part is necessary to understand the used models and hence to interpret the tested
hypotheses, which will be tested in this the empirical chapter as well.
119 cf. Cordes/Dougherty (1993), p. 626 120 cf. Enzmann/Kleiber (1996), p. 119 121 cf. Swider/Zimmerman (2010), p. 488 122 cf. Brühlmann (2007), p. 901
3. Empirical Research
The objective of the empirical research of the master thesis exhibits the declaration of the
hypotheses used and the analysis of the underlying topic. The first part of the empirical
research emphasizes the determinations of the hypotheses. Afterwards, not only the sampling
and the operationalization of the variables are exposed, but also the data collection and data
analysis is discussed more precisely in order to examine the ensuing results of the research
as closing arguments.
3.1. Hypotheses
The following three hypotheses were proved based on the linear regression analysis below
and used to examine the underlying topic in order to analyze potential correlations between
start-ups’ success, entrepreneurial work motivation and burnout symptoms. For this reason,
the decision was made to prove the motivation of entrepreneurs, which is synonymously used
to represent the entrepreneurial work motivation, the performance as success satisfaction and
founding motifs as work pattern based on the symptomatic on burnout. Consequently, the first
two hypotheses directly refer to MBI in order to answer the research questions, which belong
to health consequence made from start-up success. Additionally, potential correlations among
motivational factors of start-up and MBI are also part of the first two hypotheses. However, the
third question takes a closer look on start-up’s success factors and if these will also have an
impact on the burnout symptoms.
Hypothesis1: Start-up motivation is negatively associated to burnout symptoms.
As written above in chapter 2.2.1. All nations worldwide have different views regarding job
motivation. Whereas America gets motivated by an urge of a great independence feeling,
Asian states just want to capture new challenges and be individually satisfied.123 Nevertheless,
the majority group of founders’ desires to be their own chief.124 In addition, there are two ways
to distinguish motivation, namely regarding internal and external factors, which are influencing
start-up founders.125 To achieve and enhance motivation of entrepreneurs even further,
economic factors have to be considered because they are accompanied with motivation of all
kinds regarding to young founders.126
123 cf. Chu et al. (2011), p. 87 124 cf. Baycan-Levent/Kundak (2009), p. 296 125 cf. Zimmermann (2013), p. 78 126 cf. Jayawarna et al. (2011), p. 35
Furthermore, if entrepreneurs possess a high need for achievement, these individuals purpose
in more time-consuming and energy-sapping activities. By the way, people with a high
achievement need present the ability in being more responsible for results of corporate
actions.127 Entrepreneurs should not have the urge in a higher need for achievement only, but
must also take risks. Venturesome start-up founders can be seen as one of the most motivated
types of young founders. Moreover, entrepreneurs are also often faced by uncertain business
actions, which will cause founder tremendous circumstances and therefore, these people have
to be aware and embrace new challenges regarding financial outcomes, difficult work-life
balances, safety of one’s own career and mental hygiene too.128 Besides, entrepreneurs are
characterized as being more prepared to take risks than the society in general.129
Nevertheless, depletion of motivation will result in a reduced initiative and productivity of the
entrepreneur and individuals will just work to rule.130 All in all, due to the considered theoretical
input, the above written first hypothesis was created.
Hypothesis2: Start-up success is negatively associated to burnout symptoms.
As the literature stated in chapter 2.1.2. , start-ups’ success factors reside in aspects of ethics,
moral and honesty.131 By the way, successful factors do exist in existing and potential
customers due to the fact, that exactly these people, who will buy products, can be declared
as the best adviser for companies. No other human being will respond more truthfully than the
customer itself about their wishes and needs. Therefore, constant contacts with customers are
of an essential character and tasks and duties of entrepreneurs have to be always up to date
regarding changing habits and affectedness of the society.132 However, not only financial
capital is accountable for enhancing success of a young enterprise, but also human, social
and reputation capital belong to strong success factors.133
Additionally, mental overloads, liabilities or physical consequences will cause severe health
consequences such as burnout. Fortunately, the job situation must not be the reason for
burnout symptoms, but overloads in private or personal environments will affect mental
consequences too.134 Burnout is also defined as a psychological syndrome and defined as the
result of exhaustion, cynicism and lack of success in reaction to job stressors.135 Howsoever,
burnout is characterized as an enduring implication of stress and as a long-term overstress.136
127 cf. Collins et al. (2004), p. 96 128 cf. Shane et al. (2012), p. 263 129 cf. Shane et al. (2012), p. 264 130 cf. Burisch (2006), p. 26 131 cf. Nagl (2015), p. 275 132 cf. Nagl (2015), p. 276 133 cf. Zimmermann/Chu (2013), p. 79 134 cf. Gesundheit.gv.at (2014), p. 1 135 cf. Leiter/Maslach (2004), p. 93 136 cf. Hillert/Marwitz (2006), p. 150
All in all, burnout can be seen as a kind of stress that may cause chronicle diseases.137
Consequently, having considered all the theoretical support above, the second hypothesis was
formulated.
Hypothesis3: Start-up success reinforces the effect of start-up motivation on
burnout symptoms.
Finally, the third hypothesis was built in order to find even correlations between the above-
mentioned success and motivational factors in chapter 2.1.2. And 2.2.1. It should provide a
closer look to potential dependences among these success and motivation and can be also
seen as a kind of combination of the first two hypotheses. When entrepreneurial motivation is
intended to be produced, factors – pull, push, balance and emotional factors – have to be
discovered as being subjects in enhancing job motivation of start-up companies, which are
defined in chapter 2.2. However, not every single mentioned factor is evaluated and weighted
similarly. Nevertheless, economy’s and society’s success entail certain sustainable extends of
motivational factors through which success is generated.138 All of this considered theoretical
evidences, entrepreneurial motivation matters regarding to economic and social success of
new enterprises.
G2
G3
3.2. Sampling and Operationalization of the Variables
This subchapter publishes the facts about what was measured and which entrepreneurs were
surveyed regarding potential stress feelings and well-being and what was measured to analyze
the collected data.
3.2.1. Sampling
The master thesis’ investigation engaged in the predefined field of research, namely to
ascertain correlations and relationships among start-ups’ success, entrepreneurial work
motivation and burnout symptoms. Therefore, the three variables – founder’s motivation,
performance satisfaction and the founding motifs – were constructed to find these mentioned
correlations and potential influences on burnout symptoms. For this reason, telephone
interviews were made by means of a previously created questionnaire. The design of the
interviews was held in a closed question styles and likewise in rating battery questions.
Furthermore, the answering of the research questions was executed according to a random
sample approach. Therefore, all Austrian start-up owners were consulted and depicted as the
target group at the same time. As it has already been mentioned, the entrepreneurs have to
be situated in Austria. Besides, the overall sample selection of the investigation comprised
N = 9,800 entrepreneurs, who got a questionnaire and out of this number of entrepreneurs,
N = 511 questionnaires were sent back in the end, which aggregated about 6 % of the total
amount.
3.2.2. Operationalization of the Variables
For the purpose of analyzing the above stated hypotheses of chapter 3.1. , the operationalized
control variables – gender and age –, the dependent variable – MBI – and the independent
ones - founder’s motivation, performance satisfaction and the founding motifs of an
entrepreneur – were employed to find correlations and responses regarding start-ups’ success,
entrepreneurial work motivation and burnout.
Dependent Variables
Concerning the analysis of the master thesis, start-up owners were asked via telephone to
assess the predefined questions of the questionnaire on a four to seven points Likert-scale
style, which means that in some answers either four or seven are completely pertained. All in
all, the alternative influential variable MBI was used for the master thesis’ analysis to represent
the burnout symptoms.
Independent Variables
The subsequent three variables characterize the independent ones, which were used for the
linear regression analysis:
founder’s motivation, which is used to represent the entrepreneurial work motivation,
performance stands for the success satisfaction and
founding motifs were used for work patterns.
Control Variables
In order to determine correlations between start-ups’ success, entrepreneurial work motivation
and burnout, it had to be ensured that alternative explanations were excluded for the results.
The investigations were conceptualized by controlling factors, which have an influence on the
dependent variables.139 This means for the present case, that gender and age were used as
control variables for analyzing a linear regression model, more precisely that these two
variables are constant and unchangeable for the linear regression model, which is shown later
on in 3.2. Data analysis.
3.1. Data Collection
With regard to the importance of the procedure of collecting data, quantitative primary data
was gathered through a standardized computer assisted system, which was simple to handle
by interviewed start-up founders. The first wave of the data collection was implemented by a
team of international professionals with knowledge in psychology; psychiatry and management
build up fields. From the second wave on, students were included. The original stage of the
survey took place from the researchers’ offices or students’ home offices. With respect to
companies’ opening hours, the computer assisted telephone interviews (CATI) were
accomplished during 9 am and 5 pm at Austrian time.
Right at the beginning of the process of the data collection, the student dialed a phone number
of one of the first waves’ voluntarily accepted entrepreneurs and presented the cause of the
second wave as well as the purpose of writing a master thesis on that topic. Unfortunately, it
was not as simply as expected to reach the requested interviewee due to the fact of a busy
timetable or because of not being keen on answering another round of questions. Moreover,
after the interview was finished, the interviewing student thanked for the cooperating interview
and asked if the entrepreneur will agree to volunteer in participating at another wave of the
survey. During the telephone interview, the data was immediately entered through the user-
139 cf. Business Dictionary (n. y.), p. 1
friendly and time-saving computer software. This time-saving fact was made concerning the
CATI-system. Additionally, one interview lasted about 15 to 20 minutes and out of the initial
9,800 participated Austrian start-up founders of the survey, merely 511 returns were received
due to a potential unwillingness at the attendance on behalf of entrepreneurs.
3.2. Data Analysis
The data analysis comprised 9,800 emissions of interviews and 511 realized interviews with
entrepreneurs. One of the main objectives was to find and glean information about the impacts
start-up conditions have regarding burnout symptoms and the other way round, if burnout
symptoms may affect gaining start-up success and in which sense these aspects concern work
patterns, work expectations, founding motives and the health quality of life.
Furthermore, the selected data, which was determined out of the already mentioned 511
returned interviews – was evaluated based on the program SPSS. By means of the mentioned
computer program SPSS, not only a descriptive analysis was conducted to find out the means
as well as the standard deviations, but also a linear regression analysis model was applied in
order to test the hypotheses developed in the theory section.
3.3. Results
For the purpose of estimating and evaluating relationships among variables, a linear OLS
regression analysis with a stepwise approach was applied. The regression analysis
encompasses the descriptive analysis, which was used in order to define and outline all basic
features – MBI, age, gender, founder’s motivation, performance and the founding motifs – of
the data in the master thesis, the overview of the model, ANOVA and the coefficients.
Moreover, the above written review of literature expresses the relatedness to the independent
variables – founder’s motivation, performance and founding motives. The first step of the
regression model was to test the impact of control variables age and gender on the dependent
variable burnout symptoms (MBI). In the second step, also the independent variables founder’s
motivation and performance were entered into the model to test direct effects. In the third and
final step we tested the moderation hypothesis by entering the interaction term
performance*founder’s motivation.
The following table 7 reports the descriptive analysis’ means, standard deviations and the
frequencies variables – MBI, age and gender, founder’s motivation, performance and founding
motifs. When initially considering the parameter means of every variable, one can see that the
average age of start-up founder’s is close to 44 years and the majority of these founders are
men.
MBI -5,3555 4,23492 511
age 43,6027 11,05976 511
founder’s motivation 2,29 1,356 511
performance 10,1764 7,03358 511
Table 7: Descriptive Analysis of the control, dependent and independent variables
The following tables 8 to 10 – overview of the model, ANOVA and the coefficients – summarize
the results of the linear regression analysis. The R2 of the first step by testing the control
variables on the dependent variable reveals a low value of about adjR2 = 0,001. The model
reaches an adjR2 22,4 in the second step and 28 in the third one. While the model is not
significant in the first step, it is highly significant in the second and third step.
Furthermore, Hypothesis 1 assumes that the more entrepreneurial the start-up motivation of
entrepreneurs will be, the less burnout symptoms they will show. In the second step of the
model we find a direct effect, which however becomes insignificant, when the interaction term
is considered in the third step. Thus, there is no stable direct effect between the strength of
entrepreneurial founding motives and burnout symptoms among founders and H1 is not
supported.
H2 postulates a negative direct relationship between start-up success and burnout symptoms
among founders. The results show a highly significant (p = 0.000), moderate negative
(r = - 0.266) direct relationship that also remains highly significant and gains strength
(r = - 0.634) after entering the interaction term. According to the results, H2 is supported.
H3 postulates a joint impact of the level of entrepreneurial founding motives and the
performance of the start-up on founders’ burnout symptoms. We expect that with more success
the entrepreneurial motivation impacts stronger on entrepreneurs’ burnout symptoms. The
interaction term is highly significant (p = 0.000) and indicates a positive effect (r = 0.563). Thus,
the results support H3.
square standard error
in F
1 ,030a ,001 -,003 4,24128 ,001 ,236 2 508 ,790
2 ,474b ,224 ,218 3,74466 ,223 72,839 2 506 ,000
3 ,529c ,280 ,273 3,61142 ,056 39,028 1 505 ,000
a. predicator: (absolute term), gender, age
b. predicator: (absolute term), gender, age, founder’s motivation, performance
c. predicator: (absolute term), gender, age, founder’s motivation, performance, founding motifs x performance
Table 8: Overview of the Model
ANOVAa
1 regression 8,483 2 4,242 ,236 ,790b
residuum 9138,154 508 17,988
sum total 9146,638 510
residuum 7095,386 506 14,023
sum total 9146,638 510
residuum 6586,374 505 13,042
sum total 9146,638 510
a. dependent variable: MBI
c. predicator: (absolute term), gender, age, founder’s motivation, performance
d. predicator: (absolute term), gender, age, founder’s motivation, performance, founding motifs x performance
Table 9: ANOVAa
Coefficientsa
model
B standard error Beta tolerance VIF
1 (absolute term) -5,879 ,968 -6,071 ,000
age ,003 ,017 ,008 ,184 ,854 1,000 1,000
gender ,330 ,497 ,029 ,665 ,507 1,000 1,000
2 (absolute term) -7,100 ,943 -7,528 ,000
age ,010 ,015 ,027 ,683 ,495 ,997 1,003
gender -,100 ,442 -,009 -,227 ,820 ,988 1,013
founder’s motivation 1,333 ,123 ,427 10,802 ,000 ,981 1,019
performance -,160 ,024 -,266 -6,713 ,000 ,973 1,027
3 (absolute term) -5,391 ,950 -5,676 ,000
age ,014 ,014 ,038 ,999 ,318 ,995 1,005
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