Inhibition or Support: Research on the Mechanism by which Income Disparity Affects Entrepreneurship

Abstract

The income gap has an important impact on entrepreneurship. This study summarizes two fundamental viewpoints: Income disparity stimulates entrepreneurship through factors such as individual psychological mechanisms and material conditions. Income disparity undermines social trust and creates material constraints to restrain entrepreneurship. Furthermore, a comparative analysis of the two viewpoints was further conducted from four dimensions: quantitative relationship, internal causes, influence path and decision-making differences.