Rugged individualism, natural disasters, and inter-county variation in entrepreneurial activity

Pankaj C. Patel*, Pejvak Oghazi, Rana Mostaghel

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Building on the negative to mixed effects of natural disasters on entrepreneurial activity, we posit that regional rugged individualism attenuates the decline in business activity following natural disasters. We find that greater property damage from natural disasters in the presence of greater rugged individualism does not affect the establishment entry rate. However, it lowers the decline in establishment exit rates and the job reallocation rate decline by small effect sizes (0.3%). The findings show that regional individualism in the face of natural disasters does not increase entrepreneurial activity but abates the decline in entrepreneurial activity.

Original languageEnglish
Peer-reviewed scientific journalApplied Economics Letters
Volume31
Issue number2
Pages (from-to)132-138
Number of pages7
ISSN1350-4851
DOIs
Publication statusPublished - 2024
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • entrepreneurship
  • individualism
  • natural disasters
  • small business and disaster

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