Entrepreneurship plays a pivotal role in alleviating poverty and fostering economic and societal growth. Entrepreneurs with higher levels of subjective well-being (SWB) often exhibit resilience and increased productivity in their endeavors. While previous studies have mainly focused on Western contexts with an emphasis on economic outcomes, our study aligns with the emerging interest in everyday entrepreneurship in non-Western settings. This research explores how clan culture, a prevalent informal institution in non-Western contexts, affects the SWB of rural entrepreneurs and examines the influence of contingencies within the clan on this relationship. Situated within the context of China, our qualitative findings offer detailed insights into the activities and personal experiences of rural entrepreneurs. Our quantitative analysis further reveals a negative relationship between clan culture and SWB. This negative association is pronounced among entrepreneurs with high in-clan status and in areas with a dense entrepreneurial landscape. However, this negative association is mitigated when the rural community develops adaptive conventions. This study contributes to literature by shedding light on the role of informal institutions in shaping the entrepreneurial journey and entrepreneurs’ well-being. It underscores the complex interplay between entrepreneurship and communal obligations, interwoven with individuals’ social status, the dynamics of communal entrepreneurship, and community conventions.
