Biology and Selection into Entrepreneurship—The Relevance of Prenatal Testosterone Exposure

Abstract

This study examines the relationship between prenatal testosterone exposure (PTE) and selection into entrepreneurship. We argue that the relationship between PTE and entrepreneurial intent is positive and mediated by general and domain–specific risk–taking related to financial investment and professional career. Using the second–to–fourth digit ratio (2D:4D) as noninvasive retrospective marker for PTE, we identify two–step mediation effects of PTE on entrepreneurial intent through both general and domain–specific risk–taking. To account for possible socialization–based effects, we control for gender and parental self–employment. Applying ordinary least squares (OLS) regression analyses and structural equation models, we provide empirical evidence for a biological association between 2D:4D and entrepreneurial intent.

Entrepreneurs embrace competition: evidence from a lab-in-the-field study

“…Consistent with findings reported in previous research, we also observe higher preferences for general, financial, and career-related risks among revealed and potential entrepreneurs than among non-entrepreneurs (cf. Caliendo et al 2009;Bönte et al 2016). We do not observe, however, statistically significant differences between entrepreneurs and nonentrepreneurial individuals with respect to confidence in winning the math and dice tasks.…”

The Impact of Entrepreneurial Culture Dimensions on Entrepreneurial Intention: A Cross Cultural Study

“…In addition, risk propensity is described in the literature as an entrepreneurial trait that determines the entrepreneurial intention [30]. Zhao et al [11] argue that people having high score on risk propensity are more attracted to entrepreneurship.…”

Biology (prenatal testosterone), psychology (achievement need) and entrepreneurial impact

“…A number of recent findings investigating direct relationships, for example, suggest that entrepreneurship may have a biological basis Shane, 2010, 2009;Zhang et al, 2009). Other research on the other hand advanced our knowledge about the processes from distal biological to psychological predictors, entrepreneurial intentions and business venturing (Bönte et al, 2015). Our study adds to these findings by asking under what circumstances biological factors may have an impact on entrepreneurship.…”

“…Levels of testosterone were shown to predict new venture creation and risk taking propensity (White et al, 2006); prenatal testosterone was positively related to risk taking and in turn to entrepreneurial intend (Bönte et al, 2015) and to an interest in enterprising professions (Weis et al, 2007). Surprisingly, reports concerning the relationship between testosterone and entrepreneurial success are still missing from the literature and little is known about possible effects of testosterone levels in existing businesses.…”