This two-wave longitudinal study among 121 entrepreneurs in The Netherlands investigated bi-directional relationships between entrepreneurs’ well-being and performance. Results of Smart PLS analyses showed positive well-being at Time 1 (work engagement; life satisfaction; and job satisfaction) predicted subjective entrepreneurial success 2 years later, both as indicated by entrepreneurs’ reports of achieved financial success (including personal income security and wealth, business turn-over, sales and profit growth), as well as perceptions of achieved personal success (personal fulfilment, community impact and employee relations). No relations were found with objective indicators of business performance (profit; turnover; and number of employees) over time. The expected recursive relationship between performance and well-being was only found in the short term; a better objective financial situation immediately preceding the second measurement moment, predicted better well-being at T2. These results are both in line with a well-being–performance (gain) cycle, and the happiness set-point thesis that predicts resilience in the face of events. This paper contributes to the literature by emphasizing the importance of entrepreneurs’ well-being as a key factor in long-term subjective financial and personal entrepreneurial success. The practical implication is that entrepreneurs should maintain and improve their own well-being to achieve positive long term business outcomes.

Additional Metadata
Keywords Entrepreneurial success, Entrepreneurship, General life satisfaction, Job satisfaction, performance, Small business, Well-being, Work engagement
Persistent URL dx.doi.org/10.1007/s10902-017-9914-6, hdl.handle.net/1765/101898
Journal Journal of Happiness Studies: an interdisciplinary forum on subjective well-being
Citation
Dijkhuizen, J, Gorgievski-Duijvesteijn, M.J, van Veldhoven, M.J.P.M, & Schalk, R. (2017). Well-Being, Personal Success and Business Performance Among Entrepreneurs: A Two-Wave Study. Journal of Happiness Studies: an interdisciplinary forum on subjective well-being, 1–18. doi:10.1007/s10902-017-9914-6