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Do Attitudes Toward Risk Taking Affect Entrepreneurship? Evidence from Second-generation Americans

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Abstract

This paper empirically investigates the impact of willingness to take risks on the likelihood of being an entrepreneur. We use a quarter century of data on second-generation Americans from Current Population Surveys in conjunction with country level measures of willingness to take risks from the Global Preference Survey. The average level of risk taking in the country of origin is found to have a positive and significant impact on the likelihood of being an entrepreneur. A one-standard deviation increase in risk taking increases the probability of being an entrepreneur by 15 percent. We also examine other preferences and cultural measures including trust, patience, and individualism. We find that these do not have an impact on entrepreneurship, while risk taking continues to be significant.

Suggested Citation

  • Areendam Chanda & Bulent Unel, 2019. "Do Attitudes Toward Risk Taking Affect Entrepreneurship? Evidence from Second-generation Americans," Departmental Working Papers 2019-07, Department of Economics, Louisiana State University.
    • Handle: RePEc:lsu:lsuwpp:2019-07
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    Cited by:

    1. is not listed on IDEAS
    2. Bulent Unel, 2025. "Effects of immigration on native entrepreneurship in the US: an analysis of self-employment over 1980–2018," Small Business Economics, Springer, vol. 64(2), pages 755-773, February.
    3. Victor Gay, 2023. "Culture: An Empirical Investigation of Beliefs, Work, and Fertility. A Verification and Reproduction of Fernández and Fogli (2009)," Post-Print hal-04194417, HAL.
    4. Melanie Koch & Lukas Menkhoff, 2025. "The non-linear impact of risk tolerance on entrepreneurial profit and business survival," Small Business Economics, Springer, vol. 64(4), pages 1643-1670, April.
    5. Awaworyi Churchill, Sefa & Chang, Simon & Smyth, Russell & Trinh, Trong-Anh, 2025. "The long run gender origins of entrepreneurship: Evidence from Australia's convict history," Journal of Business Venturing, Elsevier, vol. 40(6).
    6. Schneck, Stefan, 2025. "The origins of entrepreneurship: How parental role models and socialization shape later entrepreneurial intentions," GLO Discussion Paper Series 1678, Global Labor Organization (GLO).
    7. Aart Kraay & Roy Weide, 2022. "Measuring intragenerational mobility using aggregate data," Journal of Economic Growth, Springer, vol. 27(2), pages 273-314, June.
    8. Yao, Yuxin & Yang, Biman & Zhou, Yang, 2025. "Natural disaster experiences and household entrepreneurship: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 102(C).
    9. Chan Yang & Xiaogang He & Xiaoyan Wang & Jinjun Nie, 2022. "The Influence of Family Social Status on Farmer Entrepreneurship: Empirical Analysis Based on Thousand Villages Survey in China," Sustainability, MDPI, vol. 14(14), pages 1-27, July.
    10. Guo, Qiuyue & Wang, Jiaxing & Liu, Yiwei, 2025. "Connecting opportunities: The role of digital infrastructure in household entrepreneurship under China’s ‘broadband China’ initiative," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 738-749.
    11. Truc Thanh Tran & Nam Khanh Pham, 2024. "Risk Preferences and Entrepreneurial Decision-Making: Evidence from Experimental Methods in Vietnam," Sustainability, MDPI, vol. 16(11), pages 1-16, May.
    12. Tong Wang & Jiaxuan Liu & Hongyu Zhu & Yuansheng Jiang, 2024. "The Impact of Risk Aversion and Migrant Work Experience on Farmers’ Entrepreneurship: Evidence from China," Agriculture, MDPI, vol. 14(2), pages 1-20, January.
    13. Jonsson, Sara & Ouyang, Qinglin, 2023. "Effects of cultural origin on entrepreneurship," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 308-319.

    More about this item

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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