Blessing in Disguise? Social and Institutional Determinants of Entrepreneurial Intentions following Involuntary Job Loss

In this study, drawing from occupational identity theory, we argue that self-employment decision is influenced by the extent to which one's perceived social status will be enhanced by pursuing such a career, as well as the presence of favorable institutional climate. Using nonprofit employment assistance agencies, we surveyed 266 individuals in the southern part of the United States who had faced involuntary job loss. The result of our hierarchical moderated regression data analysis indicates that perceived social status and business climate were significant predictors of self-employment intentions. Overall, our findings highlight the role of social and institutional environment in facilitating self-employment.