What Distinguishes Entrepreneurs? A Comparative Study of European Entrepreneurs from a Social Identity Perspective

Abstract

This study explores the pre-requisites of entrepreneurs and self-employed to develop a social identity. It is argued that forming of an identity is facilitated by distinctiveness and homogeneity of basic values and social connectedness. Based on the European Social Survey, the study assesses empirically (1) which values do entrepreneurs hold and how well they are embedded in the society and (2) how entrepreneurs differ form people in paid labour in their values and social connectedness. Furthermore, these pre-requisites for forming a social identity are related to self-employment rates. The results show that entrepreneurs have a basis for forming a social identity, which is more based on distinction from people in paid labour than on commonality. Interestingly the study also reveals that the social identity of entrepreneurs is based on conservative values and a resistance to change, which contradicts the idea of the Schumpetrian entrepreneur.