February 12, 2015
The results of a 5 year study by Phillip Kim, associate professor of entrepreneurship at Babson College, and Stephen Lippman, associate professor of sociology at Miami University, are proving that those entrepreneurs who let passion drive their entrepreneurial leanings may be better suited for long-term success.
In the study, which will be published in full in the Journal of Business Venturing, early-stage US founders answered questions annually to determine how their business was performing. Within the group of 1,100 entrepreneurs were those who’d started a business based on their personal hobbies. The study found that while the hobby-based entrepreneurs lagged behind other entrepreneurs initially, after almost 4 years their business had caught up to those of their peers and were more likely to become profitable in the long run.
As Professor Kim reported in a Wall Street Journal article about the study, one reason why those who build businesses on their passions may be more successful is that these are founders who care deeply about the business they’re building and they enjoy the work they’re doing. This makes it easier for them to overcome the obstacles and hurdles that every entrepreneur faces along the way.
(Seems fitting that we’re talking about passion with Valentine’s Day just two days away, doesn’t it! )