The Influence of Family Social Status on Farmer Entrepreneurship: Empirical Analysis Based on Thousand Villages Survey in China

Abstract

Researchers in the fields of psychology and sociology have demonstrated the profound influence of social status on people’s behavior. Although existing studies show that social status matters, scholars have devoted little attention to how family social status affects individuals’ risk-taking entrepreneurial behavior. In Chinese rural areas, where the idea of “family” is deeply embedded, how family social status affects farmers’ entrepreneurial behavior is still an unsolved question. In this paper, we analyze the impact of family social status on farmer entrepreneurship and investigate the moderating effects of external institutional factors, such as regional policy uncertainty and local family culture. Our findings show that family social status has an important impact on farmers’ risk preferences, therefore affecting their motivation to undertake entrepreneurial behaviors. By inspecting the role of social status at the family level, our study offers important implications for social class and entrepreneurial theorizing.

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