Risk Attitudes and Profits among Small Enterprises in Nigeria

Judith Lammers, Daan Willebrands and Joop Hartog
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Judith Lammers: University of Amsterdam
Daan Willebrands: SEO Economic Research
Joop Hartog: University of Amsterdam

No 10-053/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper analyses the effect of risk attitudes of firm owners on profits among micro and small enterprises (MSEs) in Lagos, Nigeria. Higher risk perceptions are shown to have a significant positive effect on profits, whereas risk propensity has a negative or no effect. Education, age, being male, and firm size are all positively related to profit, while young firms earn lower profits. Overall, the results suggest that being aware and dealing cautiously with risk leads to higher profitability.

Keywords: entrepreneurship; risk perception; risk behavior; profit; MSEs (search for similar items in EconPapers)
JEL-codes: D12 L25 L26 (search for similar items in EconPapers)
Date: 2010-05-19
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Citations: View citations in EconPapers (3)

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