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Article

Jindrich Spicka

Risk attitude is an elementary attribute of entrepreneurial behaviour. Determinants of risk-taking propensity have been widely investigated in the group of entrepreneurs…

Abstract

Purpose

Risk attitude is an elementary attribute of entrepreneurial behaviour. Determinants of risk-taking propensity have been widely investigated in the group of entrepreneurs and non-entrepreneurs so far. There is a lack of evidence on determinants of risk-taking propensity in the farming business, which is considered as risky business because of the ongoing climate change and epidemic outbreaks. Alternatively, the risk of lower European Union budget raised the question, how to implement publicly supported financial instruments for micro and small farmers which have lower credit rating. The purpose of this study is to find socio-demographic determinants of the risk-taking propensity of the Czech micro farms, controlling for the type of farming.

Design/methodology/approach

The survey of 747 micro farmers was processed through ordinal logistic regression. The study is based on the subjective self-assessment of the risk-taking behaviour which is frequently used to measure risk-taking attitude. The results are representative from the type of farming point of view.

Findings

The model provided clear evidence that age, household size, living with the partner/wife/husband and level of education have a significant relationship with risk-taking propensity. The most risk-tolerant farmers are young with less formal education and living in small households. The risk-taking propensity varies by the type of farming. Specialized crop farms have significantly higher risk-taking propensity than farms with a substantial share of livestock production. Alternatively, gender, feeling about household income and religion are not significantly related to the risk-taking propensity of the Czech micro farms.

Research limitations/implications

The main limitation of the study is the number of explanatory variables and the use of self-assessment of risk-taking attitude. The risk attitude can be explained by other variables which require in-depth qualitative research, such as past risk experience, the structure of decision problems, market orientation and operation under subsistence conditions.

Practical implications

The significant determinants of risk-taking attitude of micro farmers are important for banks, the Czech Support and Guarantee Fund for Farmers and Forestry and for policymakers who design the rules for post-2020 common agricultural policy. The study is original and valuable for the Central and Eastern European countries’ implementation of financial instruments as new rules for investment support are being prepared and research on the risk-taking attitude of the most vulnerable segment of farmers has not been conducted.

Originality/value

The originality of this study is from the perspective of agricultural sector as well as from the micro farms point of view. The results have commercial and political implications. Younger farmers, singles and lower-educated farmers have significantly higher risk-taking propensity and can be potentially risky clients for banks. Such farmers represent the financial gap in the credit market, and their viable development projects could be subject for implementation of financial instruments co-financed by the European Agricultural Fund for Rural Development in the forthcoming programming period past 2020.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 12 no. 4
Type: Research Article
ISSN: 2053-4604

Keywords

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Article

Syed Awais Ahmad Tipu

Given the critical mass of literature on entrepreneurial risk-taking, the purpose of this paper is to assess the contribution to the knowledge so far by exploring…

Abstract

Purpose

Given the critical mass of literature on entrepreneurial risk-taking, the purpose of this paper is to assess the contribution to the knowledge so far by exploring important themes in the literature on entrepreneurial risk-taking.

Design/methodology/approach

The review is organized around four themes: nature of entrepreneurial risk-taking; antecedents of entrepreneurial risk-taking; context of entrepreneurial risk-taking; and outcomes of entrepreneurial risk-taking. The author critically evaluates the literature on each theme and presents the pointers for future research.

Findings

Literature does provide a holistic view encapsulating different dimensions of entrepreneurial risk-taking, but it has produced largely inconsistent findings in terms of risk and gender, risk propensity of entrepreneurs in comparison to non-entrepreneurs and the outcomes of entrepreneurial risk-taking. Organizational antecedents, non-financial measures and ethical- and health-related consequences of entrepreneurial risk are underexplored. Inconclusive literature also implies that the risk may not be a distinguishing or important factor for undertaking an entrepreneurial endeavor. Therefore, it is pertinent to explore the critical factors entrepreneurs consider (or not consider) while marshalling their resources to embark on an entrepreneurial journey. This posits the need to explore an entrepreneur’s informal approach toward risk-taking.

Originality/value

Suggested pointers of future research will potentially enhance the theoretical understanding of entrepreneurial risk-taking.

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Article

Desislava Ivanova Yordanova and Matilda Ivanova Alexandrova‐Boshnakova

The research objective of the study is to investigate the gender effects on risk propensity, risk perception, and risk behaviour of entrepreneurs distinguishing between…

Abstract

Purpose

The research objective of the study is to investigate the gender effects on risk propensity, risk perception, and risk behaviour of entrepreneurs distinguishing between direct and indirect gender effects. The study seeks to address the gap in the knowledge of the link between risk taking, risk propensity, and risk perception in the context of women and risk (Brindley).

Design/methodology/approach

Based on Sitkin and Pablo's model of risk behaviour and the literature on cognitive factors as determinants of risk perception, the paper provides hypotheses about the link between gender, risk perception, risk propensity, and risk behaviour. The proposed hypotheses are tested on a sample of 382 Bulgarian entrepreneurs.

Findings

Although female and male entrepreneurs have similar risk perceptions, female entrepreneurs are likely to have a lower risk propensity than male entrepreneurs. Risk propensity mediates completely the effect of gender on risk behaviour. The effect of gender on risk propensity is mediated partially by risk preference, outcome history, and age. Gender has an indirect effect on risk perception via overconfidence and risk propensity.

Research limitations/implications

The paper's ability to draw causal inferences is limited by the cross‐sectional nature of the study. The results may not be applicable to other countries and occupations.

Practical implications

The findings help to clarify the reasons for gender differences in risk behaviour and risk propensity of entrepreneurs and to design behavioural interventions.

Originality/value

This paper is an attempt to create a better understanding of the factors that account for gender differences in risk taking.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 17 no. 3
Type: Research Article
ISSN: 1355-2554

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Article

John W. Mullins, David Forlani and Richard N. Cardozo

An experimental study was conducted in a sample of America’s most successful entrepreneurs and one of comparable large company managers to examine three research…

Abstract

An experimental study was conducted in a sample of America’s most successful entrepreneurs and one of comparable large company managers to examine three research questions: Why do some individuals choose riskier ventures than do others? Do managers and successful entrepreneurs perceive new venture risk and potential differently? What accounts for differences, if any, in their decision‐making behavior? The findings are equally interesting for the effects we found and did not find. We found that differences in risk propensity and in situational factors like the market competencies brought to a particular venture influence risky new venture decision‐making; that perceptions of new venture risk and potential differ between managers and successful entrepreneurs, though in a direction opposite to that we hypothesized; and that individual differences, rather than group‐level differences, are primarily responsible for the degree of risk taken by managers and successful entrepreneurs. Taken together, our results call for further research at the marketing/entrepreneurship interface and research into differences between managers and entrepreneurs, using samples of highly successful entrepreneurs and comparable managers in established firms.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 4 no. 3
Type: Research Article
ISSN: 1471-5201

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Article

Ahmad Rashid and Halim Boussabiane

The purpose of this paper is to analyze the existing project management literature by conceptualizing the influence of personality and cognitive traits on project…

Abstract

Purpose

The purpose of this paper is to analyze the existing project management literature by conceptualizing the influence of personality and cognitive traits on project managers’ risk-taking behaviour.

Design/methodology/approach

The paper is based on an in-depth analysis of the existing literature to develop framework for conceptualizing risk propensity in project management.

Findings

The results indicate that the Big Five personality traits cannot capture risk propensity in risk-taking behaviour on their own. Cognitive traits are indispensable components in risk propensity.

Research limitations/implications

The paper examines the association between risk propensity theories and personality traits. The paper framed project managers’ personality traits that can impact their tendency to take risky decisions, that is risk propensity.

Originality/value

This paper expands literature by increasing our understanding of personality and cognitive traits in risk propensity.

Details

International Journal of Managing Projects in Business, vol. 14 no. 2
Type: Research Article
ISSN: 1753-8378

Keywords

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Article

Rachid Zeffane

The purpose of this paper is to examine the impact of trust, personality and risk taking on entrepreneurial intentions (EIs). In this perspective, it explores gender…

Abstract

Purpose

The purpose of this paper is to examine the impact of trust, personality and risk taking on entrepreneurial intentions (EIs). In this perspective, it explores gender differences among nascent and actual entrepreneurs in the context of the United Arab Emirates (UAE).

Design/methodology/approach

Survey data were collected from two sets of populations: 370 students attending business courses in a university in the UAE (as proxies to nascent entrepreneurs) and 324 small business owners/operators (as proxies to actual entrepreneurs). The scales used in the study were borrowed from previous research and were also empirically confirmed through reliability tests.

Findings

In support of previous research, analyses of variance confirmed the hypotheses that females are less inclined to become entrepreneurs and are less likely to take risk. Females were also found to be less trusting than males. Regression analysis revealed that, the intention to engage in entrepreneurship is most significantly affected by the propensity to trust. These confirm the study hypotheses.

Research limitations/implications

This study is set in a single country and as such, its findings may be constrained by cultural/national specificities. Future research could consider examining the variables of this study (particularly gender differences and their relevance to the effects of trust and risk taking on EIs) in a wider cross-national context.

Practical implications

The findings of this study clearly indicate that trust is an important variable that can be cultivated at the pre-entrepreneurial stage so that future entrepreneurs (females in particular) are appropriately equipped and geared to cope with risk in entrepreneurship activities.

Originality/value

Research on gender, trust, risk taking and entrepreneurial behaviors in the UAE/Middle East context remains lacking. Also, studies using samples of both actual and nascent entrepreneurs remain lacking. This study fills these gaps and also provides a platform for further understanding the importance of gender differences in relation to trust, personality, risk taking and EIs.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 11 no. 3
Type: Research Article
ISSN: 2042-5961

Keywords

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Article

Md. Borhan Uddin Bhuiyan, Muhammad A. Cheema and Yimei Man

The authors empirically examine the impact of the stand-alone risk committee on corporate risk-taking and firm value.

Abstract

Purpose

The authors empirically examine the impact of the stand-alone risk committee on corporate risk-taking and firm value.

Design/methodology/approach

The authors argue that the existence of a stand-alone risk committee enhances the quality of corporate governance, which reduces corporate risk-taking and strengthens the firm value that might improve investor protection.

Findings

The authors find corporate risk-taking decline significantly for firms that have a stand-alone risk committee compared with firms that have a joint audit and risk committee. The authors also find that the presence of a stand-alone risk committee is positively associated with firm value.

Practical implications

The evidence is consistent with the proposition that firms with a stand-alone risk committee can effectively evaluate potential risks and implement a proper risk management system.

Originality/value

This is the first paper that investigates the association between the existence of a stand-alone risk committee and firm risk-taking in a multi-industry setting. Also, our research extends the association between a stand-alone risk committee and firm value.

Details

Managerial Finance, vol. 47 no. 3
Type: Research Article
ISSN: 0307-4358

Keywords

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Article

Rachid Zeffane

This paper aims to review and discuss recent literature on gender, trust, risk-taking and entrepreneurship. On this basis, a hypothetical model as a basis for theoretical…

Abstract

Purpose

This paper aims to review and discuss recent literature on gender, trust, risk-taking and entrepreneurship. On this basis, a hypothetical model as a basis for theoretical and hypothetical development in future research is proposed.

Design/methodology/approach

This paper presents a review of the literature on gender, trust, risk-taking and entrepreneurship. A hypothetical model that can form the basis of future research in the field of entrepreneurship is developed.

Findings

In recent years, the issue of gender and its effect on entrepreneurship has been the subject of much debate and controversies. While some studies have shown that gender differences tend to affect intentions to become an entrepreneur, other studies deny any significant differences in this regard. Among these, a significant number of studies reveal that women are less likely to engage in entrepreneurial activities than their male counterparts. One of the major reasons provided for these gender disparities is the tendency of women to be less predisposed to taking risk than their male counterparts. This may in itself be the resultant of gender differences in their predisposition to trust.

Research limitations/implications

The arguments and proposed model are in need of empirical testing and verifications. Future research may consider and test the validity of the model. Use of structural equation modeling in this regard may prove beneficial.

Practical implications

The proposed model may also be considered by governments and stakeholders vested with tasks of promoting the participation of females in entrepreneurial activities in various contexts. This would entail that the factors of risk-taking/aversion and propensity to trust be considered and alleviated.

Originality/value

In examining the underlying reasons for gender differences in entrepreneurial activities, the research to date has not incorporated the interplay of risk propensity and the propensity to trust. The proposed model incorporates these to help unravel the “enigma” of gender differences in entrepreneurship.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 9 no. 3
Type: Research Article
ISSN: 1750-6204

Keywords

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Article

Nor Azizan Che Embi, Haruna Babatunde Jaiyeoba and Sheila Ainon Yussof

The purpose of this paper is to reflect on the data collected from Malaysian students to investigate the effects of students’ entrepreneurial characteristics (need for…

Abstract

Purpose

The purpose of this paper is to reflect on the data collected from Malaysian students to investigate the effects of students’ entrepreneurial characteristics (need for achievement, locus of control, propensity to take risk, self-confidence, tolerance of ambiguity and uncertainty, and leadership) on their propensity to become entrepreneurs in Malaysia.

Design/methodology/approach

As a quantitative study, various analyses, such as exploratory factor analysis, confirmatory factor analysis and structural equation modelling, were conducted to analyze the data collected from 257 students known to have participated in entrepreneurship course and programmes.

Findings

The results show that leadership skill, need for achievement, tolerance of ambiguity, and risk-taking propensity are positively and significantly associated with students’ intention to initiate entrepreneurial activities in Malaysia.

Originality/value

The researchers have used data from the perspective of Malaysian students to increase the readers’ understanding on students’ entrepreneurial characteristics that could enhance their likelihood to become entrepreneurs in Malaysia.

Details

Education + Training, vol. 61 no. 7/8
Type: Research Article
ISSN: 0040-0912

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Article

Omid Rezaei, Mehrdad Vasheghani Farahani and Fatemeh Musaei Sejzehei

The purpose of this paper is to investigate the possible relationship between novice vs experienced EFLs teachers’ Big Five personality traits, ambiguity tolerance and…

Abstract

Purpose

The purpose of this paper is to investigate the possible relationship between novice vs experienced EFLs teachers’ Big Five personality traits, ambiguity tolerance and risk taking. To this purpose, 30 teachers of TEFL courses were randomly selected, and three instruments of NEO Five-Factor Inventory, Ambiguity Tolerance Scale and Risk-taking Propensity Measure were employed to measure their Big Five personality traits, their ambiguity tolerance and risk taking, respectively.

Design/methodology/approach

The study was a quantitative ex post facto study. The first phase of the study was to investigate the relationship among variables of the study. On the other hand, the second phase of the study examined the impact of experience of teachers on their risk taking and ambiguity tolerance.

Findings

The results showed that the more experienced the teachers are, the less risk they take and the more ambiguity tolerant they are. On the other hand, the less experienced the teachers are, the more risk they will take and the less they can tolerate ambiguity. The findings of this research can have useful implications for teacher training programs as well as teaching practices.

Originality/value

This study can add to the circle of knowledge and enhance theoretical assumptions of the field. Moreover, considering the Iranian context, a few studies have focused on the importance of uncovering relationship between five big personality traits and teachers’ personality factors. Therefore, this study is an attempt to investigate the relationship between the Big Five personality traits of teachers and their ambiguity tolerance and risk taking.

Details

Journal of Applied Research in Higher Education, vol. 11 no. 3
Type: Research Article
ISSN: 2050-7003

Keywords

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