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The protestant ethic and entrepreneurship: inside the black box.
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- Author(s): Nunziata, Luca; Rocco, Lorenzo
- Source:
Small Business Economics; Apr2024, Vol. 62 Issue 4, p1285-1313, 29p- Subject Terms:
- Source:
- Additional Information
- Abstract: We provide one of the first investigations of the cultural and value dimensions through which Protestantism affects entrepreneurship by focusing on the historically predetermined religious minorities residing in the regions of the former Holy Roman Empire. By exploiting the minorities' strong attachment to religious ethic, we find that Protestantism significantly affects the probability to be an entrepreneur and that the effect is relatively larger when we consider larger enterprises. A formal mediation analysis suggests that among the rich set of individual characteristics and values typically associated with entrepreneurship available in our data, the dimensions that mediate the effect of Protestantism are education and a taste for individualism. In particular, such mediating factors explain around 26% of the total effect of Protestantism on entrepreneurship. Plain English Summary: Protestantism boosts the likelihood of entrepreneurship through higher education, individualism, less regard for rules, and a zest for life. This research reveals that Protestant beliefs increase the chance of becoming an entrepreneur, especially for larger businesses. The key factors linking Protestantism to entrepreneurship are higher education and a strong sense of individualism, which includes an aversion to following rules and humility and a taste for an exciting life. Together these account for around 26% of the impact of Protestantism on entrepreneurship. In essence, culture and values play a key role in shaping successful entrepreneurs. Understanding cultural influences is crucial for those seeking to promote new businesses and for those studying the determinants of new and successful ventures. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Small Business Economics is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Abstract:
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