Loss Aversion and Hybrid Entrepreneurship: Economic Insecurity, Low-Income Wage Work, and Side Hustles

Abu Zafar M. Shahriar; Dean A. Shepherd; Rayhan Ara Zaman

doi:10.1177/10422587261419795

Loss Aversion and Hybrid Entrepreneurship: Economic Insecurity, Low-Income Wage Work, and Side Hustles

Abu Zafar M. Shahriar¹; Dean A. Shepherd²; Rayhan Ara Zaman¹

¹ Monash Business School, Monash University, Clayton, Victoria, Australia · ² Mendoza College of Business, University of Notre Dame, Notre Dame, IN, USA

Entrepreneurship Theory and Practice 2026

Hybrid entrepreneurship as a side hustle is a widespread yet understudied coping strategy among low-income wage workers. This study examines how loss aversion is associated with such side-hustle activities and their links to well-being. We conducted a mixed-method study in Bangladesh. Quantitative analysis, based on surveys and lab experiments, indicates that loss aversion is associated with a higher likelihood of engaging in hybrid entrepreneurship, which is in turn linked to higher well-being. Qualitative analysis, based on in-depth interviews, illustrates mechanisms that may underlie these associations. Together, these findings provide insights into the protective role of hybrid entrepreneurship in poverty contexts.

DOI: 10.1177/10422587261419795
Language: en
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