Religiosity and entrepreneurial outcomes: examining the roles of altruism and voluntary simplicity from an identity theory perspective

Scholars have debated the role of religiosity in shaping entrepreneurial behavior. This question is particularly important in Islamic contexts, where faith places a strong emphasis on social welfare and economic activity. The current study draws on identity theory to explore how Islamic religiosity may relate to entrepreneurial, social entrepreneurial, and ecopreneurial intentions. We also examine the role of altruism and voluntary simplicity as underlying mechanisms linking religiosity to entrepreneurial outcomes. Data were collected in three stages from 270 university students in Pakistan. The findings indicate that religiosity promotes altruism and voluntary simplicity among individuals. Altruism, in turn, fosters entrepreneurial, social entrepreneurial, and ecopreneurial intentions. However, while voluntary simplicity encourages ecopreneurial and social entrepreneurial intentions, it does not mediate the relationship between religiosity and entrepreneurial outcomes. These findings reveal that religiosity may shape entrepreneurship by enhancing altruistic values. This study highlights altruism as a key pathway linking religiosity to entrepreneurial outcomes. Although religiosity may not directly motivate individuals to start businesses, it fosters values that inspire socially responsible and environmentally conscious ventures. These insights are important for educators and policymakers seeking to design entrepreneurship programs that resonate with cultural and religious values.