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    Effects of Risk Attitude in The Start)

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    Mae Bertillo
    This document discusses the effects of risk attitude in the start-up process. Several studies have found that individuals with a higher tolerance for risk are more likely to start their own business ventures. For example, university students inclined to start their own business showed higher risk-taking propensity than those not inclined. The evidence also suggests that willingness to take financial risks correlates positively with future self-employment. However, the impact of risk aversion may depend on factors like previous employment status.

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    Effects of Risk Attitude in The Start)

    Uploaded by

    Mae Bertillo
    391 views5 pages
    This document discusses the effects of risk attitude in the start-up process. Several studies have found that individuals with a higher tolerance for risk are more likely to start their own business ventures. For example, university students inclined to start their own business showed higher risk-taking propensity than those not inclined. The evidence also suggests that willingness to take financial risks correlates positively with future self-employment. However, the impact of risk aversion may depend on factors like previous employment status.

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    Effects of Risk Attitude in the Start)

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    This document discusses the effects of risk attitude in the start-up process. Several studies have found that individuals with a higher tolerance for risk are more likely to start their own business ventures. For example, university students inclined to start their own business showed higher risk-taking propensity than those not inclined. The evidence also suggests that willingness to take financial risks correlates positively with future self-employment. However, the impact of risk aversion may depend on factors like previous employment status.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    391 views5 pages

    Effects of Risk Attitude in The Start)

    Uploaded by

    Mae Bertillo
    This document discusses the effects of risk attitude in the start-up process. Several studies have found that individuals with a higher tolerance for risk are more likely to start their own business ventures. For example, university students inclined to start their own business showed higher risk-taking propensity than those not inclined. The evidence also suggests that willingness to take financial risks correlates positively with future self-employment. However, the impact of risk aversion may depend on factors like previous employment status.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 5

    EFFECTS OF RISK

    ATTITUDE IN THE
    START-UP PROCESS

    Discussant: Alyssa T. San Juan


    • A large literature looks at the impact of entrepreneurial
    risk attitudes on the likelihood of starting a venture and
    on the enventual success.
    • Carmer et al.(2002) considered 1,500 individuals from
    1952,1983, and 1993 allowing for a long time span for
    entrepreneurial choice to come about.
    • In a very different setting Gurol and Atsan (2006)
    administered a random sample of 400 fourth year
    university students who intend to start their own business
    venture show higher risk-taking propensity than non-
    inclined students.
    • An individual with a higher level of risk tolerance is more
    likely to enter self-emplyoment.
    • Browm et al.(2002) use 14,305 observations from the
    panel study of income dymanics , find that willness take
    financial risk correlates positively with future self-
    employment.
    • Other international studies include Ekelund et al.
    (2005),which analyze psychometric data from the briths
    cohort study.
    • They find that harm aviodance carries a negative effect
    on the individual’s pobability of being self-employment .
    • Ca liendo et al (2009) observe in the GSOEP that
    individuals with lower risk aversion are more likely to
    become self-employment if they are coming out of regular
    emplyoment, but risk aversion does not explain entry for
    those coming out of unemployment or inactivity.
    • Across the studies, the wiegth of the evidence suggets
    that indivisuals with greater risk tolerance are more likely
    to enter entrepreneurship, but same measure of risk
    aversion for different populations of potential
    entrepreneurs and comparison groups should be further
    examined which are more directional than quantitative.
    • The realities of business venturing (and
    subsequent rates of failure) make it quite
    reasonable that a would be entrepreneur needs to
    be one who can tolerate a lot of risks , but it is very
    important to consider various situational factors.

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