December 2024

IZA DP No. 17571: Temporal Focus and Entrepreneurial Orientation of Solo Self-Employed Workers

The temporal dimensions of managerial behavior and their impact on organizational outcomes have garnered increasing attention in the literature. Given the significant role of managers' time perception in shaping a firm's strategic direction, this study contributes by examining the relationship between temporal focus and the entrepreneurial orientation (EO) of solo self-employed workers. Drawing on a Dutch sample of 783 self-employed individuals, we find that both present and future temporal focus positively relate to their EO, and that this relationship is stronger for future focus. Our findings also suggest that these two temporal orientations act as substitutes rather than complements, in determining the EO of self-employed workers. We contend that this outcome may be attributed to the resource limitations typically encountered in solo self-employment. Collectively, our results underscore the critical role of temporal focus in the context of entrepreneurial pursuits.