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Effects of cultural origin on entrepreneurship

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  • Jonsson, Sara
  • Ouyang, Qinglin

Abstract

This paper investigates the effects of cultural origin on entrepreneurship. Using Swedish registry data on second-generation immigrants and risk appetite measures from the Global Preference Survey (GPS), we investigate whether risk preferences in parents’ home countries affect entrepreneurship. We find that children of immigrants from more risk-loving cultures are more likely to start up a business, although of poorer quality. We also find that entrepreneurs with parents from cultures with higher risk appetite earn a lower personal income. Our analysis demonstrates that culturally transmitted risk appetite has significant effects beyond individual and parental socioeconomic characteristics.

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  • Jonsson, Sara & Ouyang, Qinglin, 2023. "Effects of cultural origin on entrepreneurship," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 308-319.
    • Handle: RePEc:eee:jeborg:v:216:y:2023:i:c:p:308-319
    DOI: 10.1016/j.jebo.2023.10.026
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    More about this item

    Keywords

    Culture; Entrepreneurial entry; Risk appetite; Firm performance; Personal income;
    All these keywords.

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • G50 - Financial Economics - - Household Finance - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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