Are entrepreneurs really more willing to take risks than the average person?
Mojca Svetek | 21 September 2023
“Risk taker” is one of the top descriptions of entrepreneurs. There is little doubt that entrepreneurs face risks and uncertainties to a greater extent than employees do. Unlike employees who receive fixed wages or investors who diversify their investments, entrepreneurs bet everything on an idea whose execution is uncertain and demand is unknown.
Given this, the perception is that most entrepreneurs must be more willing to take risk than the average person. But is the “risk taker” label really justified? Join us in this episode where we are going to explore:
- What is risk propensity;
- Are you prone to taking or avoiding risks;
- Are entrepreneurs prone to taking risks;
- What is the relationship between risk propensity and entrepreneurial success.
Research articles:
- Brandstätter, H. (2011). Personality aspects of entrepreneurship: A look at five meta-analyses. Personality and Individual Differences, 51(3), 222-230. https://doi.org/10.1016/j.paid.2010.07.007
- Macko, A., & Tyszka, T. (2009). Entrepreneurship and risk taking. Applied Psychology, 58(3), 469-487. https://doi.org/10.1111/j.1464-0597.2009.00402.x
- Mullins, J. W., & Forlani, D. (2005). Missing the boat or sinking the boat: A study of new venture decision making. Journal of Business Venturing, 20(1), 47-69. https://doi.org/10.1016/j.jbusvent.2003.08.001
- Wu, B., & Knott, A. M. (2006). Entrepreneurial risk and market entry. Management Science, 52(9), 1315-1330. https://doi.org/10.1287/mnsc.1050.0543
- Zhao, H., Seibert, S. E., & Lumpkin, G. T. (2010). The relationship of personality to entrepreneurial intentions and performance: A meta-analytic review. Journal of Management, 36(2), 381-404. https://doi.org/10.1177/0149206309335187
