Dimensions of Religiousness and Entrepreneurship: Evidence from Muslim Countries

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Abstract
This study investigates the role of religiousness - defined as a multidimensional set of religious beliefs, feelings, knowledge, and practice - on the likelihood for individuals to be entrepreneurs. We construct precise measures of both religiousness and entrepreneurship from the 2017 World Value Survey data for a subset of four countries (Egypt, Iraq, Jordan, and Lebanon). In general, religiousness decreases both entrepreneurship and entrepreneurial spirit. Yet, the impact differs across the intrinsic/extrinsic divide. Individuals who believe more, feel more, and pray more, are less likely to be entrepreneurs; individuals who attend services more often are more likely to be entrepreneurs. Interestingly, the effect is opposite for attitudes: strong beliefs and feelings towards religion lead to a more positive attitude towards entrepreneurship – but it does not translate into an actual behaviour. Fatalism, defined as a set of cosmological beliefs, partly explains our results. We also show that religious minorities are more likely to become entrepreneurs, but if they have developed a set of religious practices, and that women are less likely to become entrepreneurs, even more as they are religious.

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