Narrow Results

The chapter portrays the GCC region starting with its history. It overviews the evolution of the region and particularly the establishment of the GCC. Furthermore, it depicts the overall economic profile of the region and its socioeconomic development since its inception. It ends with the content description of the whole book.

This chapter aims to illustrate the different environmental factors and their impact on entrepreneurship in Qatar. Despite its economic prosperity and governmental efforts to foster entrepreneurship Qatar still has not achieved its full potential in this regard. The analysis of the situation of entrepreneurship in Qatar shows no insurmountable difficulties at the macro-level. The problems are rather due to culture generated personality traits that are common among Qatari people. In fact, the fear of failure and the aversion towards risk and stress are negatively impacting entrepreneurial intentions among the population. The example of Qatar shows that a favourable economic situation does not necessarily promote entrepreneurship. The Qatari government is making huge efforts to optimise the legal and economic situation in order to reduce business risk and facilitate start-ups. However, it still has to invest more in human development in order to make Qatari people aware of the opportunities that their country is offering for innovative business ideas.

This article jointly analyses a behavioural and a cultural concept to explain household debt portfolio choice. The behavioural approach explores the role of time preferences on household debt maturity in a theoretical model and a numerical analysis. We derive a positive relationship between the long-term discount factor δ and the optimal maturity of household loans. The cultural approach examines whether national culture is a reasonable predictor for household debt maturity. We show that culture is an important factor for households’ borrowing decisions and has even more predictive power than time preferences. Countries with higher scores on the Hofstede dimension of long-term orientation tend to have shorter household debt maturity. Time preferences incur a primarily mediating role, because the effect of national culture on the borrowing decision is reduced, as the long-term discount factor δ increases.