Religious Diversity: Helping or Hindering Entrepreneurs in Transition Countries?

36 Pages Posted: 1 Jun 2013 Last revised: 30 Jul 2014

See all articles by Elena Nikolova

Elena Nikolova

Central European Labour Studies Institute (CELSI); University College London - School of Slavonic and East European Studies; IOS Regensburg

Dora Simroth

ESMT European School of Management and Technology

Date Written: May 31, 2013

Abstract

Using the 2010 Life in Transition Survey, this paper studies the association between local religious diversity and individual entrepreneurial behavior in 29 transition countries. We find that localities with higher religious diversity have more respondents who have tried to set up a business. Although religious diversity also correlates with a higher start-up probability (following trial), this effect is driven by higher access to finance. We also provide suggestive evidence that the positive association between local religious diversity and entrepreneurial trial is positively moderated by social capital (when measured as access to weak ties and the ability to bridge structural holes).

Keywords: entrepreneurship, transition region, diversity

JEL Classification: L26, P31, Z12

Suggested Citation

Nikolova, Elena and Nikolova, Elena and Simroth, Dora, Religious Diversity: Helping or Hindering Entrepreneurs in Transition Countries? (May 31, 2013). Available at SSRN: https://ssrn.com/abstract=2272615 or http://dx.doi.org/10.2139/ssrn.2272615

Elena Nikolova (Contact Author)

Central European Labour Studies Institute (CELSI) ( email )

Zvolensk√° 29
Bratislava, 82109
Slovakia

University College London - School of Slavonic and East European Studies ( email )

Malet Street
London WC1E 7HU
United Kingdom

IOS Regensburg ( email )

Landshuter Str. 4
Regensburg, 93047
Germany

Dora Simroth

ESMT European School of Management and Technology ( email )

Schlossplatz 1
10117 Berlin
Germany

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