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The perverse effect of fatalism on entrepreneurial selection

Author

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  • Gabriele Ruiu

    (Università degli studi di Sassari, Dipartimento di Scienze Economiche e Aziendali)

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.

Suggested Citation

  • Gabriele Ruiu, 2014. "The perverse effect of fatalism on entrepreneurial selection," Economics Bulletin, AccessEcon, vol. 34(2), pages 901-922.
    • Handle: RePEc:ebl:ecbull:eb-13-00841
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    References listed on IDEAS

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    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • Z1 - Other Special Topics - - Cultural Economics

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