A study of individual and market level factors to estimate key determinants of financial success among solopreneurs
Year: 2025
Type: article
Abstract: This study investigates how personality traits, age, risk propensity, and structural factors influence the long-term financial success of solopreneurs, defined as solo-founded ventures typically characterized by the absence of a dedicated workforce during the early years of operation. Using data from 4,470 solo-founded ventures in the German Institute for Employment Research/Centre for European Economic Research start-up panel, we model sustained profitability over the first 7 years as a binary outcome and test seven hypotheses grounded in trait, decision-making, and resource-based theories. The regression results show that two psychological traits - Openness and Conscientiousness - significantly increase the likelihood of long-term profitability (odds ratio OR = 1.616; OR = 1.279). Preference for low-risk projects (OR = 1.607) and being age ≤ 50 years (OR = 2.126) further enhance success odds. Conversely, general risk attitude, gender, sector affiliation, and research and development involvement show no significant effects. The results challenge assumptions about sectoral or innovation-based advantages and emphasize the significance of psychological variables in solopreneurship. This study contributes to a multidimensional understanding of entrepreneurial success and supports the development of evidence-based support strategies tailored to individual trait-context combinations.
Source: Scientific Reports
Authors: Wolfgang Hagenauer, Harald T. Zipko
Institution: Mendel University in Brno
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $2,690
OpenAlex ID: W4415568842