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Booth Research Finds High Performance Employees Likely To Start-Up Own Ventures

Oftentimes, entrepreneurs are seen as “corporate misfits”– those who ditch the 9-5 lifestyle for “a life of untold riches and the satisfaction of being one’s own boss.” But according to new research from the University of Chicago Booth School of Business, entrepreneurs aren’t always corporate misfits, but in fact just the opposite. As Chicago Booth’s Amanda Sharkey and Stanford’s Jesper Sorensen write in their paper, “Entrepreneurship as a Mobility Process,” when they decide to make a move, individuals who are an especially good fit with their employers are more likely to start their own businesses rather than jump to a rival.

According to Sharkey, the reason is that being well-matched with your employer is a double-edged sword:

“While it helps a person get ahead at their current job, it also means that the person has skills that are uniquely valuable to their current employer and may find it harder for them to find another job that rewards them as well as their current employer does As a result, when well-matched individuals seek to get ahead, they are more likely to start their own business than they are to move to another employer.”

Both researchers also write that that in these instances people often only think of the success stories, rather than the much more common reality of failure and resulting difficulties, i.e. less lucrative salaries, and grueling work hours. However the researchers found that in some cases workers are not aware of the positive opportunities that they might have with their current company, and ask “what can companies do to keep these employees in the fold?”

“An employer might work harder to ensure that there are opportunities for high performers to innovate or advance within the firm so that they don’t feel like starting their own business is their only option to get ahead,” Sharkey said.

The paper originally appeared in the April 2014 issue of the American Sociological Review. Information used in this post originates from this Press Release from the Chicago Booth website.

About the Author

Max Pulcini is a Philadelphia-based writer and reporter. He has an affinity for Philly sports teams, Super Smash Bros. and cured meats and cheeses. Max has written for Philadelphia-based publications such as Spirit News, Philadelphia City Paper, and Billy Penn, as well as national news outlets like The Daily Beast.

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