The purpose of this thesis is to identify what motivational changes occur while a lifestyle entrepreneur moves through three different organizational stages. The focus will however be on stage one and three. The problem of an under-researched field is addressed and how the motivation of specific lifestyle entrepreneurs, in these cases hairdressing salon owners, has changed. This thesis has been conducted with an interpretivistic viewpoint, an inductive approach and with a qualitative research method. The authors have selected to analyze the data through pattern matching and dividing the interviewees into two different case studies, one for each of the two chosen organizational stages in focus. In conclusion the authors found that intrinsic and extrinsic motivations have had different effects within all stages in the organizational life cycle. The authors have discovered that during stage one the intrinsic motivations play a large role. During stage one where the organization is small and young the lifestyle entrepreneurs are motivated by factors such as independence and self-efficacy. Stage two is a more extrinsic dominated phase with the factors integrated regulations and identified regulation as motivators. The third stage is a return to the intrinsic motivations with factors such as locus of control and egoistic passion. This is further explained within the chapter with help of the analysis and empirical findings. A figure has been presented to show the different phases and their motivational change.