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Risk tolerance, gender, and entrepreneurship: The Palestinian case

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  • Yousef S. Daoud
  • Shaker Sarsour
  • Ruba Shanti
  • Sanaa Kamal

Abstract

This paper analyzes the inter‐relationships between entrepreneurial propensity, fear of failure (FoF), and gender in Palestine, using the Global Entrepreneurship Monitor (GEM) adult population survey (APS) data for 2009, 2010, and 2012, and it is the first that addresses Gender, fear of failure, and entrepreneurship for Palestine. The paper extends the analysis of the endogeneity issue of FoF by using the conditional mixed process (CMP), which improves the efficiency of the estimates. The results show that the fear of failure negatively affects entrepreneurial status, while skill perception does the opposite. It is also found that fear of failure is higher among women, although this result is not stable over time. Using the CMP specification, we find that gender and fear of failure both reduce the predicted probability of entrepreneurship consistently over time. The only variable that consistently predicts fear of failure and is significant is skill perception, which has a negative impact. Policy implications of this research point to the importance of reducing the gender gap in entrepreneurship. In particular, there is a need to improve their skill perception in order to encourage more females to be entrepreneurs. Networking, vocational education and media coverage of success stories are among the tools that could potentially achieve this result.

Suggested Citation

  • Yousef S. Daoud & Shaker Sarsour & Ruba Shanti & Sanaa Kamal, 2020. "Risk tolerance, gender, and entrepreneurship: The Palestinian case," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 766-789, August.
    • Handle: RePEc:bla:rdevec:v:24:y:2020:i:3:p:766-789
    DOI: 10.1111/rode.12634
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    References listed on IDEAS

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    Cited by:

    1. Dileni Gunewardena & Abdoulaye Seck, 2020. "Heterogeneity in entrepreneurship in developing countries: Risk, credit, and migration and the entrepreneurial propensity of youth and women," Review of Development Economics, Wiley Blackwell, vol. 24(3), pages 713-725, August.
    2. Syed Abid Hussain & Mohd Shamim & Zubair Ahmad Sofi & Mohd Yasir Arafat & Aamir Hassan, 2022. "Drivers of venture creation in agricultural sector: a GEM data-based study," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 371-384, December.
    3. Shyue Chuan Chong & Han Kok Heng & Siok Jin Lim & Vejaratnam Navaratnam & Andaeus Zun Khan Neoh, 2021. "Financial Risk Tolerance: The Case of Older Chinese in Klang Valley, Malaysia 2020," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(2), pages 1-9, April.
    4. Michał Szostak, 2021. "Impact of gender differences in perception of creative identities of artist, creator, manager, entrepreneur and leader on sustainability," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(2), pages 10-36, December.
    5. Amparo Serrano‐Pascual & Carlota Carretero‐García, 2022. "Women’s entrepreneurial subjectivity under scrutiny: Expert knowledge on gender and entrepreneurship," Gender, Work and Organization, Wiley Blackwell, vol. 29(2), pages 666-686, March.

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