A lifestyle Entrepreneur is an individual who creates a business with the purpose of altering his/her personal lifestyle and not for the sole purpose of making profits. A lifestyle entrepreneur focuses more on the life rewards provided to people that enjoy and have a passion for what they are doing. There is a possibility that the business will do particularly well since the individual has a passion for what he/she is doing.
Researchers have defined lifestyle entrepreneurs as individuals who owned and operated businesses closely aligned with their personal values, beliefs, interests,and passions (Ewing Marion Kauffman Foundation, 2004; Henricks, 2002).
Lifestyle entrepreneurs are fueled by the desire to earn a respectable living, find satisfaction in career attainment and achievements, and spend quality time with family and friends (Henderson, 2002).
The unusual characteristics of Lifestyle Entrepreneurs:
- Motivated by quality of life rather than growth
- Very limited growth orientation
- Underutilisation of resources and capital investment
- Irrational management and non Return-on-investment based decision making
- Limited marketing and product development expertise and activities
- Motivated by survival and sufficient income to maintain their and their families’ way of life
- Low education and training on management
- Not fully aware of quality management techniques
- Low involvement within industry growth and industry structures
- Unwillingness to let go or to sell their ventures
- Questionable economic sustainability