Do Entrepreneurs Have High Life Satisfaction? Evidence from Japan

Author Name HONJO Yuji (Faculty Fellow, RIETI) / IKEUCHI Kenta (Fellow, RIETI) / NAKAMURA Hiroki (Chuo University)
Creation Date/NO. October 2019 19-E-083
Research Project Creation and Development of High-tech Startups
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This study investigates the impact of entrepreneurial experience on life satisfaction. Using a unique survey about entrepreneurial experience, level of wealth, and personal attributes of individuals in Japan, we examine the factors that mediate the association between entrepreneurial experience and subjective well-being. As a result, we do not find any evidence on the total effect of entrepreneurial experience on subjective well-being. However, we find a positive indirect effect of entrepreneurial experience on subjective well-being through wealth, in addition to a negative indirect effect through debt. Our findings suggest that monetary incentives motivate Japanese individuals to become entrepreneurs.