The relationship between motivation to make an occupational choice and entrepreneurship development

Abstract

This study develops a simple model that explains the conditions which provide a choice by persons who have entrepreneurial talent self-employment instead of paid-employment. We assume that there are two factors determine this occupational choice: expected earnings and personal values. Our theoretical results show that in order to choose a job that fits talents of a person there are two extremal conditions have to be satisfied. (1) If expected earnings are equal, a person with entrepreneurial talent will always choose entrepreneurship; (2) if a person is interested only in an interesting job regardless of the monetary side of the decision, he will always choose an entrepreneurship. That is, the differences between the expected earnings at two occupations will guarantee the 'right' occupational choices only if personal values are more altruistic than greedy. We show that Russian entrepreneurs are more greedy than altruistic. Hence, they have more chances to get an occupation that does not fit their talent.