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The Effect of Personality Traits on Entrepreneurial Development in Western China

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  • Xi Tian

Abstract

This study uses the 2012 household skills survey conducted by the World Bank in Kunming, China, to investigate the relationship between personality traits and entrepreneurial development with a discrete choice model. The paper systematically examines whether different kinds of personality characteristics measured by the Big Five traits (extroversion, conscientiousness, agreeableness, emotional stability. and openness) and risk preference influence entrepreneurial development in western China. The analysis indicates that personalities have significant effects on entrepreneurship behavior in general. In particular, individuals with higher risk preferences, extroversion, emotional stability, and conscientiousness are associated with a higher probability of choosing entrepreneurship. However, other factors have negligible impacts on entrepreneurship in our results.

Suggested Citation

  • Xi Tian, 2021. "The Effect of Personality Traits on Entrepreneurial Development in Western China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(5), pages 1284-1299, April.
    • Handle: RePEc:mes:emfitr:v:57:y:2021:i:5:p:1284-1299
    DOI: 10.1080/1540496X.2019.1684256
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