Climate risk and informal entrepreneurship in emerging economies : The moderating effects of entrepreneurs’ socio-cognitions

Abstract

<p> This study examines the impact of climate risk on informal entrepreneurship in emerging economies. Drawing on a sample of 6,317 new ventures across 38 emerging countries during the 2012–2013 period, we find that climate risk discourages informal entrepreneurship. This effect is particularly pronounced among entrepreneurs who fear failure but does not vary with their level of self-efficacy. This study extends the implications of climate risk to informal entrepreneurship and enriches our knowledge of the antecedents of informal entrepreneurship. Moreover, by contextualizing the impact of climate risk on informal entrepreneurship in emerging markets, this study offers a more fine-grained analysis of the relationship between climate risk and entrepreneurship. <br></p>