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

doi:10.1177/097135570501500103

Home
/
Papers
/
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...

read less

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 ...

...read moreread less

Citations

PDF

Open Access

More filters

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.

...read moreread less

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)

...read moreread less

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.

...read moreread less

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...

...read moreread less

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....
[...]

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...

...read moreread less

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...

...read moreread less

63 citations

Journal Article•DOI•

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

[...]

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.

...read moreread less

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...

...read moreread less

40 citations

Journal Article•DOI•

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

[...]

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.

...read moreread less

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.

...read moreread less

18 citations

1
2
3
4
…

References

PDF

Open Access

More filters

Journal Article•DOI•

Determining Entrepreneurial Potential of Students.

[...]

Donald L. Sexton, Nancy Bowman

01 Aug 1983

TL;DR: A comparison of the psychological characteristics of entrepreneurship students with others in the general student body is made in this article, where the results of two psychological and one risk-taking tests, admin...

...read moreread less

Abstract: A comparison of the psychological characteristics of entrepreneurship students with others in the general student body. Analysis of the results of two psychological and one risk-taking tests, admin...

...read moreread less

70 citations

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

...Sexton and Bowman (1983), using the Jackson Personality Inventory, found that risk-taking significantly differentiated students majoring in entrepreneurship from other students....
[...]

Journal Article•DOI•

Principles of Political Economy with some of their Applications to Social Philosophy.

[...]

H. R. Mussey, John Stuart Mill, W. J. Ashley

05 Jan 1911

TL;DR: In this paper, the authors discuss wealth, progress, the economic system, profits, the working class, government influences, taxes, national debt, and the principle of laissez-faire.

...read moreread less

Abstract: Discusses wealth, progress, the economic system, profits, the working class, government influences, taxes, national debt, and the principle of laissez-faire.

...read moreread less

67 citations

Journal Article•DOI•

Determinants of Risk Taking in a Dynamic Uncertain Context

[...]

Jeffrey P. Slattery¹, Daniel C. Ganster²•Institutions (2)

Northeastern State University¹, University of Arkansas²

01 Feb 2002-Journal of Management

TL;DR: In this paper, the effects of positive and negative framing on risky decision making in a simulated managerial judgement task were investigated in a more realistic decision making environment in which individuals chose more or less risky goals in a complex dynamic task that featured uncertain outcomes and meaningful consequences.

...read moreread less

52 citations

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

...A study by Slattery and Ganster (2002) tested the effects of positive and negative framing on risky decision-making in a simulated managerial judgement task....
[...]
...A study by Slattery and Ganster (2002) tested the effects of positive and negative framing on risky decision-making in a simulated managerial judgement task. This study simulated a more realistic decision-making environment in which individuals chose more or less risky goals in a complex dynamic task that featured uncertain outcomes and meaningful consequences. Decision-makers chose a series of performance goals under conditions of either potential losses or gains and also received feedback about their goal attainment. The results failed to replicate the Prospect Theory Predictions about initial gain versus loss framing typically found in static decision-making contexts. In addition, the researches tested competing hypothesis derived from Prospect Theory and Quasi-Hedonic Editing (QHE) Theory about the effects of performance outcome feedback on subsequent decisions. Consistent with the QHE theory, decision-makers who had failed to reach their goals set lower, less risky goals in subsequent decisions. The findings illustrate a need for further research on risk-taking in environments that resemble managerial decision-making more closely. Craid (1988) and Kogan and Wallach (1964) emphasise the possible multi-dimensional aspect of risk-taking....
[...]

Journal Article•DOI•

Leadership and group decisions involving risk

[...]

George C Hoyt¹, James Arthur Finch Stoner¹•Institutions (1)

Massachusetts Institute of Technology¹

01 Jul 1968-Journal of Experimental Social Psychology

TL;DR: This article found that the risky effect of group interaction is not due to the leadership of particular risk-prone persons, but due to other factors, such as group discussion to consensus stil produced decisions which were riskier than the mean of individual decisions of group members.

...read moreread less

42 citations

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

...Many researchers have also commented on its poor logical consistency (Cartwright, 1971; Hoyt & Stoner, 1968) and the reliability of the questionnaire (Brockhaus, 1980)....
[...]

Journal Article•DOI•

Personality Characteristics, Work Values, and Life Styles of Fast- and Slow-Progressing Small-Scale Industrial Entrepreneurs

[...]

Satvir Singh¹•Institutions (1)

Guru Nanak Dev University¹

01 Dec 1989-Journal of Social Psychology

TL;DR: In this paper, psychosocial variables that differentiate fast and slow-progressing small-scale industrial entrepreneurs were studied and found that high scores on emotional stability, self-assurance, upward striving, potential for change and development, competitiveness, punctuality, hard work, tolerance for work pressure, and education were associated with a fast rate of industrial growth.

...read moreread less

Abstract: Psychological variables that differentiate fast- and slow-progressing small-scale industrial entrepreneurs were studied. Twenty-two different psychosocial variables were reliably measured in 448 industrial entrepreneurs of Punjab, India. Three analyses were undertaken: intergroup comparison for the mean scores for industrial growth obtained after dichotomizing the sample at the median; comparison of the extreme 25% with highest and lowest industrial growth; correlation of the measured variables with growth in industrial productivity. Results showed that high scores on emotional stability, self-assurance, upward striving, potential for change and development, competitiveness, punctuality, hard work, tolerance for work pressure, and education were associated with a fast rate of industrial growth. Tendermindedness, guilt-proneness, anxiety, hoarding tendency, high risk-taking, and traditionality were associated with static or declining industrial growth.

...read moreread less

35 citations

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

...Studies on the risk-taking propensity of entrepreneurs in India (Singh & Singh, 1971; Singh, 1989) found that entrepreneurs’ scores on risk-taking propensity were widely distributed....
[...]
...While some researchers have found that macro-level interventions had a positive impact on industrialisation, others (Singh, 1989) have found that most of the efforts made by the government were futile....
[...]