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Gabriele Ruiu
''The perverse effect of fatalism on entrepreneurial selection''
( 2014, Vol. 34 No.2 )
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.
Keywords: Entrepreneurship, Fatalism, Occupational Choice
JEL: J0 - Labor and Demographic Economics: General
Z1 - Cultural Economics; Economic Sociology; Economic Anthropology: General
Manuscript Received : Dec 20 2013 Manuscript Accepted : May 06 2014

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