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Risk Tolerance, Gender, and Entrepreneurship: The case of the occupied Palestinian territory

Yousef Daoud, Ruba Shanti, Sana Kamal and Shaker Sarsour

Working Papers PMMA from PEP-PMMA

Abstract: This paper analyzes the inter-relationships between entrepreneurial propensity, fear of failure (fof), and gender using the Global Entrepreneurship Monitor (GEM) Adult Population Survey (APS) data for 2009, 2010, and 2012 for a number of countries. The results show that the fear of failure, higher among women, negatively affects entrepreneurial status while the skill perception does the opposite. It is also found that gender increases the probability of fear of failure, although this result is not stable over time. Using the Conditional Mixed Process (CMP) specification, we find that gender and fof both reduce the predicted probability of entrepreneurship consistently over time. The only variable that consistently predicts fof and is significant is skill perception; its impact is negative. Policy implications of this research point to the importance of reducing the gender gap in entrepreneurship. Particularly, in order to encourage more females to be entrepreneurs, there is a need to improve their skill perception. This will reduce fof and increase entrepreneurial propensity. This could be achieved by many tools such as through networking and media coverage of success stories, etc.

Keywords: Entrepreneurship; Gender; Risk Tolerance; Palestine (search for similar items in EconPapers)
JEL-codes: L26 J16 D81 O53 O57 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ara and nep-ino
Date: 2015
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