The perverse effect of fatalism on entrepreneurial selection

Gabriele Ruiu

Economics Bulletin, 2014, vol. 34, issue 2, 901-922

Abstract: This paper presents a theoretical model explaining how fatalistic beliefs may influence a person's choice as to whether to become an entrepreneur. The key assumption of the model is that fatalism affects the expected effectiveness of the efforts that will be exerted in running an entrepreneurial project. The main prediction is that fatalism will be a serious obstacle to high ability entrepreneurs but not necessarily to low ability ones. Using GEM and WVS data, we confirm that the effect of fatalism is much stronger for opportunity driven entrepreneurs than for necessity driven entrepreneurs.

Keywords: Entrepreneurship; Fatalism; Occupational Choice (search for similar items in EconPapers)
JEL-codes: J0 Z1 (search for similar items in EconPapers)
Date: 2014-05-06
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