When I Feel My Business Succeeds, I Flourish: Reciprocal Relationships Between Positive Orientation, Work Engagement, and Entrepreneurial Success

Abstract

The purpose of this study was to investigate potential reciprocal relationships between entrepreneurs’ personal resources—namely, positive orientation—work engagement, and entrepreneurial success. We also investigated stability/change in the levels of these variables over time. We collected data from a sample of entrepreneurs using a longitudinal field study design with three measurement times, at 7-month intervals. The results confirm reciprocal relationships between positive orientation as well as work engagement and entrepreneurial success, evaluated in comparison with other businesses in the same sector and region. Entrepreneurs’ positive orientation predicts their evaluation of entrepreneurial success over time, and vice versa—entrepreneurs who experience successes develop their personal resources and work engagement. Upward spirals, consisting in an increase in the variables over time, were not detected. The understanding of the ways in which entrepreneurs’ personal resources foster the success of their firms, and vice versa, helps to advance the psychological explanation of entrepreneurship. This knowledge may inform training strategies employed by practitioners supporting entrepreneurs and potentially reduce the costs associated with the collapse of businesses.