Gender differences, risk attitude and entrepreneurship in Kyrgyzstan

Abstract

This study analyses the role of risk attitude for entrepreneurship by gender differences in Kyrgyzstan. Logit analysis is applied to the cross-sectional data set drawn from the nationally representative survey for 2011. Entrepreneurship is measured by the self-employment activities and analysed by the agricultural and non-agricultural sample. Results of the study show that more risk-taking preferences are associated with higher entrepreneurship probability. However, this effect is not persistent for women in further estimations for non-agricultural entrepreneurship sample, while for men higher positive effect of risk loving behavior remains in off-farm self-employment too. These findings underline the existing difference in risk tolerance by gender in non-agricultural employment. Movement of women from farm to off-farm entrepreneurship may not necessarily require risk loving characteristics. However, further analysis of this difference should take into account potential difference of necessity and opportunity entrepreneurs by gender.

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