Evaluation of Entrepreneurial Risk-Taking using Magnitude of Loss Scale

T.J. Kamalanabhan, D.L. Sunder and Amat Taap Manshor
Additional contact information
T.J. Kamalanabhan: T.J. Kamalanabhan is Associate Professor in the Department of Humanities and Social Sciences, Indian Institute of Technology Madras, Chennai, India.
D.L. Sunder: D. L. Sunder is Research Associate in the Department of Humanities and Social Sciences, Indian Institute of Technology Chennai, India.
Amat Taap Manshor: Amat Taap Manshor is Professor of Management at the University College of Technology and Management, Malaysia.

Journal of Entrepreneurship and Innovation in Emerging Economies, 2006, vol. 15, issue 1, 37-46

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 measures of risk-taking propensity were collected from entrepreneurs, prospective entrepreneurs and non-entrepreneur others. While the groups did not differ significantly on risk-taking propensity as measured by the Choice Dilemma Questionnaire, entrepreneurs and prospective entrepreneurs differed significantly from others on the Magnitude of Loss Questionnaire. Similarly, entrepreneurial aspirants differed significantly from the nonentrepreneur group. These results highlight the significance of loss, an important aspect in risk-taking, which is often ignored in entrepreneurial and managerial studies. The riskiness in business ventures which has been the main stumbling block for many is not the low probability of success but the high stakes involved in entrepreneurship.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/097135570501500103 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:jouent:v:15:y:2006:i:1:p:37-46

DOI: 10.1177/097135570501500103

Access Statistics for this article

More articles in Journal of Entrepreneurship and Innovation in Emerging Economies from Entrepreneurship Development Institute of India
Bibliographic data for series maintained by SAGE Publications ().