Evaluation of Entrepreneurial Risk-Taking using Magnitude of Loss Scale:

doi:10.1177/097135570501500103

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Evaluation of Entrepreneurial Risk-Taking using Magnitude of Loss Scale:

Journal Article•DOI•

Evaluation of Entrepreneurial Risk-Taking using Magnitude of Loss Scale:

T.J. Kamalanabhan¹, D.L. Sunder², Amat Taap Manshor•Institutions (2)

Indian Institute of Technology Madras¹, Indian Institutes of Technology²

01 Jan 2006-Journal of Entrepreneurship (SAGE Publications)-Vol. 15, Iss: 1, pp 37-46

TL;DR: The importance of risk-taking in business ventures has been emphasised by many as mentioned in this paper, and attempts to distinguish entrepreneurs on their risk taking propensity have produced conflicting results, and data on two...

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Abstract: The importance of risk-taking in business ventures has been emphasised by many. Attempts to distinguish entrepreneurs on their risk-taking propensity have produced conflicting results. Data on two ...

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The Achieving Society

[...]

David C. McClelland

01 Jan 1961

TL;DR: The authors argued that cultural customs and motivations, especially the motivation for achievement, are the major catalysts of economic growth and proposed a plan to accelerate economic growth in developing countries by encouraging and supplementing their achievement motives through mobilizing the greater achievement resources of developed countries.

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Abstract: Examines the motivation for achievement as a psychological factor that shapes economic development. Refuting arguments based on race, climate, or population growth, the book instead argues for cultural customs and motivations - especially the motivation for achievement - as the major catalysts of economic growth. Considering the Protestant Reformation, the rise of capitalism, parents' influences on sons, and folklore and children's stories as shaping cultural motivations for achievement, the book hypothesizes that a high level of achievement motivation precedes economic growth. This is supported through qualitative analysis of the achievement motive, as well as of other psychological factors - including entrepreneurial behavior and characteristics, and available sources of achievement in past and present highly achieving societies. It is the achievement motive - and not merely the profit motive or the desire for material gain - that has advanced societies economically. Consequently, individuals are not merely products of their environment, as many social scientists have asserted, but also creators of the environment, as they manipulate it in various ways in the search for achievement. Finally, a plan is hypothesized to accelerate economic growth in developing countries, by encouraging and supplementing their achievement motives through mobilizing the greater achievement resources of developed countries. The conclusion is not just that motivations shape economic progress, but that current influences on future people's motivations and values will determine economic growth in the long run. Thus, it is most beneficial for a society to concentrate its resources on creating an environment conducive to entrepreneurship and a strong ideological base for achievement. (CJC)

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359 citations

Journal Article•DOI•

Aspects of entrepreneurial success

[...]

Jeffrey W. Alstete¹•Institutions (1)

Iona College¹

08 Aug 2008-Journal of Small Business and Enterprise Development

TL;DR: In this article, a qualitative research study summarizes and analyzes interviews with 149 established entrepreneurs and small business owners regarding their perceptions on the advantages and disadvantages of their endeavors, and on providing advice to prospective new venture creators.

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Abstract: Purpose – Guidance from successful individuals can be valuable to prospective and nascent entrepreneurs, as well as writers and instructors in the field. This paper seeks to confirm contemporary entrepreneurship concepts, examine current perceptions, and expand the knowledge base by exploring established entrepreneurship perceptions through first‐hand accounts of successful small business owners.Design/methodology/approach – This qualitative research study summarizes and analyzes interviews with 149 established entrepreneurs and small business owners regarding their perceptions on the advantages and disadvantages of their endeavors, and on providing advice to prospective new venture creators.Findings – The research revealed that entrepreneurs enjoy the independence, freedom, job satisfaction, and money, but believe the long hours, stress, responsibility, risk, and lack of company benefits are drawbacks of entrepreneurial activity. The findings largely support previous research in the field, while clarifyi...

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124 citations

Cites background from "Evaluation of Entrepreneurial Risk-..."

...The risk-taking propensity of entrepreneurs has been fairly widely-studied over many years (Hull et al., 1980; Kamalanabhan et al., 2006; Knight, 1971; Palmer, 1971), but generally has resulted in conflicting findings and is not usually researched as a potentially negative factor of entrepreneurship as a career choice....
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Journal Article•DOI•

Entrepreneurial Competencies A Meta-analysis and Comprehensive Conceptualization for Future Research

[...]

Ravindra Jain

01 Jun 2011-Vision: The Journal of Business Perspective

TL;DR: In this article, the theme of "Why, when and how some people (entrepreneurs) and not others discover, evaluate and exploit entrepreneurial opportunities" is explored. But, despite numerous research studies the theme still needs intensive inq...

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Abstract: Despite numerous research studies the theme of ‘Why, when and how some people (entrepreneurs) and not others discover, evaluate and exploit entrepreneurial opportunities?’ still needs intensive inq...

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63 citations

Journal Article•DOI•

Risk-Taking Propensity and Entrepreneurship: The Role of Power Distance

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Jasna Auer Antoncic¹, Bostjan Antoncic², Matjaz Gantar, Robert D. Hisrich³, Lawrence J. Marks³, Alexandre Anatolievich Bachkirov⁴, Zhaoyang Li⁵, Pierre Polzin⁶, José Borges⁶, António Coelho⁶, Marja-Liisa Kakkonen - Show less +7 more•Institutions (6)

University of Primorska¹, University of Ljubljana², College of Business Administration³, Sultan Qaboos University⁴, Shanghai University of International Business and Economics⁵, University of Porto⁶

25 Jul 2018-Journal of Enterprising Culture

TL;DR: In this paper, a country-moderated hypothesis including the relationship between the personal characteristics of entrepreneurs and their startup intentions and behaviors is proposed to predict the behavior of an entrepreneur.

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Abstract: The personal characteristics of entrepreneurs can be importantly related to entrepreneurial startup intentions and behaviors. A country-moderated hypothesis including the relationship between an in...

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40 citations

Journal Article•DOI•

Risk-taking in entrepreneurs, compared to criminals and students: The role of uncertainty and stakes ☆

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Klára Faragó¹, Orhidea Edith Kiss¹, János Boros²•Institutions (2)

Eötvös Loránd University¹, The Catholic University of America²

01 Dec 2008-Journal of Socio-economics

TL;DR: In this article, the authors compared the risk-taking tendency of college students, entrepreneurs, and criminals in hypothetical bet situations and found that college students' decisions are more influenced by probability factors than by the amount staked.

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Abstract: Entrepreneurs’, college students’ and criminals’ risk-taking were compared in hypothetical bet situations. The level of uncertainty and the amount staked were varied in gain and loss situations. Potential profit motivates entrepreneurs to choose higher stakes, expected loss will prompt the avoidance of risk. In profit-making situations, college students’ strategies are different: Students’ decisions are more influenced by probability factors than by the amount staked. Risk-taking tendency of criminals is higher than that of the other two groups, without applying a consistent strategy in taking risk.

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18 citations

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References

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Journal Article•DOI•

Characteristics of Successful Entrepreneurs

[...]

David C. McCLELLAND¹•Institutions (1)

Boston University¹

01 Sep 1987-Journal of Creative Behavior

1,103 citations

"Evaluation of Entrepreneurial Risk-..." refers background in this paper

...Hornaday and Aboud (1971) claim that identifying entrepreneurs by traits would be of much interest to lending organisations such as banks and enfranchising organisations and governments. They also feel that this would help in designing courses on entrepreneurship. Research on the personality of the entrepreneur received a fillip with the seminal work of McClelland (1961) on Achievement Motivation. A number of studies (see Shapero & Borland, 1975) adopting the trait approach have been reported but the results have not been conclusive. One aspect of entrepreneurship which is widely acknowledged and is intuitively appealing is risk-taking (Knight, 1971). As early as 1848, J.S. Mill stressed that risk-taking is inherent to entrepreneurial activities. Palmer (1971) has also emphasised the need to explore the risk-taking behaviour of entrepreneurs....
[...]
...Hornaday and Aboud (1971) claim that identifying entrepreneurs by traits would be of much interest to lending organisations such as banks and enfranchising organisations and governments....
[...]
...Hornaday and Aboud (1971) claim that identifying entrepreneurs by traits would be of much interest to lending organisations such as banks and enfranchising organisations and governments. They also feel that this would help in designing courses on entrepreneurship. Research on the personality of the entrepreneur received a fillip with the seminal work of McClelland (1961) on Achievement Motivation. A number of studies (see Shapero & Borland, 1975) adopting the trait approach have been reported but the results have not been conclusive. One aspect of entrepreneurship which is widely acknowledged and is intuitively appealing is risk-taking (Knight, 1971). As early as 1848, J.S. Mill stressed that risk-taking is inherent to entrepreneurial activities. Palmer (1971) has also emphasised the need to explore the risk-taking behaviour of entrepreneurs. Ever since scholars questioned the assumption that managers make decisions by using normative decision-making models (March & Shapira, 1987), investigators have proposed and tested various theories that incorporate a decision-maker’s beliefs or perceptions. Because most managerial decisions involve some degree of risk, scholars have become interested in examining how determinants of risk-taking influence such decisions. Sitkin and Pablo (1992) described a variety of organisational, contextual and individual characteristics that might be associated with risk-taking behaviours....
[...]

Journal Article•DOI•

The influence of framing on risky decisions : A meta-analysis

[...]

Anton Kühberger¹•Institutions (1)

University of Salzburg¹

01 Jul 1998-Organizational Behavior and Human Decision Processes

TL;DR: It is concluded that framing is a reliable phenomenon, but that outcome salience manipulations have to be distinguished from reference point manipulations and that procedural features of experimental settings have a considerable effect on effect sizes in framing experiments.

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1,041 citations

Book•

The Art and science of entrepreneurship

[...]

Donald L. Sexton, Raymond W. Smilor

01 Jan 1986

TL;DR: The State-of-the-Art in Entrepreneurship Research (SOTAR) conference as discussed by the authors was held at the University of Texas, Austin, and the Center for Entrepreneurships at Baylor University in 1985.

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Abstract: This book presents the papers delivered at a conference, State-of-the-Art in Entrepreneurship Research, sponsored by the RGK Foundation, the IC2 Institute at the University of Texas, Austin, and the Center for Entrepreneurship at Baylor University, in February 1985. The book attempts to increase an understanding of entrepreneurship as both an art and a science by presenting state-of-the-art work by leading scholars. The volume addresses the key theoretical and practical issues in five parts. Papers in Part I emphasize the social and psychological dimensions of entrepreneurship, including its social context and aspects of female entrepreneurs. Part II demonstrates the important roles risk and venture capital financing play in supporting entrepreneurial activity. Part III explores the emerging field of high-technology entrepreneurship, including factors relating to founding of high-tech firms, interrelationships between innovation, technology transfer, and entrepreneurship, and need for a technological innovation champion in the innovation cycle. In Part IV, papers examine issues associated with corporate entrepreneurship and maintaining the benefits of entrepreneurial approaches as a firm enlarges, including identifying forces in creating fast-growth, high-potential ventures, the strategic and management factors affecting venture success, and need to theorize factors affecting corporate entrepreneurship ventures. Part V emphasizes emerging developments in, and important needs in entrepreneurship research and education. Needed are developments in methodology, longitudinal studies, development of models and a comprehensive theoretical framework, as well as research in a number of specific fields, including models to identify entrepreneurial success, definition and tests for entrepreneurship, the small business/entrepreneurship interface, and high-tech entrepreneurship and technology transfer. Four conclusions about the state of entrepreneurship research in 1985 were apparent: it is in the early stages of a rapid growth cycle; not all areas have progressed at the same rate; convergent theories to provide an overall understanding of the whole entrepreneurial process are needed; and study of entrepreneurship has an important function beyond satisfying intellectual curiosity. (TNM)

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881 citations

Journal Article•DOI•

Risk Taking: A Study in Cognition and Personality

[...]

David C. Glass, Nathan Kogan, Michael A. Wallach

01 Sep 1965-American Journal of Psychology

872 citations

Book•

经济分析史 = History of economic analysis

[...]

Joseph Alois Schumpeter

01 Jan 1991

TL;DR: For example, Hartley as discussed by the authors linked sense impressions and their associations with "nerve vibrations" and thus psychology with physiology, and worked out a theory of ethics and even of natural theology on this basis.

...read moreread less

Abstract: of a Treatise of Human Nature which he published in 1740 and which was retrieved and republished in 1938 with an introduction by J.M.Keynes and P.Sraffa. Works (modern ed. by Green and Grose, with introduction and bibliography); Life and Correspondence by J.H.Burton (1846); Letters to Strahan, ed. by J.Birkbeck Hill (1888). Further Letters of great interest, ed. by J.Y.T.Greig (1932). David Hartley (1705–57) was not, any more than was Condillac, the father of associationist psychology. But his Observations on Man...(1749) did for it what, to use an economic analogy that the reader will appreciate later, Malthus’ Essay on Population was to do for the theory contained in it. Also he imparted to it a slant that was new, so far as I know: he linked sense impressions and their associations with ‘nerve vibrations’ and thus psychology with physiology. Finally, he worked out a theory of ethics and even of natural theology on this basis. History of economic analysis 120

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825 citations