Gabriele Ruiu,

University of Sassari,

Sassari, Italy,

E-mail: gruiu@uniss.it

CAN FATALISM EXPLAIN WHY ENTREPRENEURS TEND TO SAVE SO MUCH?

Abstract. According to robust empirical findings, entrepreneurial households tend to save more than non-entrepreneurial ones. This difference in saving propensity is not merely accounted by high entrepreneurial income. This paper aims to offer a better understanding of the financial behaviour of entrepreneurs. Building on previous empirical findings on the effect of fatalistic tendencies on economic behavior, we argue that fatalism may negatively affect both the decision to save and the decision of becoming an entrepreneur. Using data from the fifth and sixth wave of the World Value Survey for the empirical testing of this idea, our multivariate analysis shows that, controlling for a large set of individual and contextual traits, fatalistic beliefs discourage both choices.

Received: September, 2017

1st Revision: December, 2017

Accepted: February, 2018

DOI: 10.14254/2071-789X.2018/11-1/19

JEL Classification: J24, L26, Z1

Keywords: fatalism; entrepreneurship; saving propensity; cultural beliefs and economic output