How Do Risk Attitudes Differ within the Group of Entrepreneurs? The Role of Motivation and Procedural Utility

Starting a business involves risk and, thus, requires a risk-taking attitude. The concept of risk and entrepreneurship has been widely discussed in the entrepreneurship literature; most studies compare entrepreneurs with nonentrepreneurs such as managers or bankers. So far, little research exists on...

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Bibliographic Details
Published in:Journal of small business management 2015-01, Vol.53 (1), p.183-206
Main Authors: Block, Joern, Sandner, Philipp, Spiegel, Frank
Format: Article
Language:English
Subjects:
Attitudes
Business management
Creativity
Entrepreneurs
Entrepreneurship
Risk
Risk theory
Small and medium sized enterprises
Startups
Studies
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Summary:Starting a business involves risk and, thus, requires a risk-taking attitude. The concept of risk and entrepreneurship has been widely discussed in the entrepreneurship literature; most studies compare entrepreneurs with nonentrepreneurs such as managers or bankers. So far, little research exists on the risk attitudes of the different types of entrepreneurs-those who pursue a new business because of opportunity and those who do so through necessity. This study aims to fill this gap. Our particular focus is on individuals' motivations to start their businesses and the nonmonetary returns from entrepreneurship. The results show that opportunity entrepreneurs are more willing to take risks than necessity entrepreneurs. In addition, those who are motivated by creativity are more risk tolerant than other entrepreneurs. The study contributes to the literature about both risk attitudes of entrepreneurs and necessity and opportunity entrepreneurship.
ISSN:0047-2778
1540-627X
DOI:10.1111/jsbm.12060