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.
Shahriar et al. (Tue,) studied this question.