The rates of safe and hazardous entrepreneurial activities: introducing the lower and upper limits of entrepreneurship risks

Nezameddin Faghih (), Lida Sarreshtehdari () and Ebrahim Bonyadi ()
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Nezameddin Faghih: Shiraz University
Lida Sarreshtehdari: University of Tehran
Ebrahim Bonyadi: University of Tehran

Journal of Global Entrepreneurship Research, 2021, vol. 11, issue 1, 347-359

Abstract: Abstract Entrepreneurial activities are influenced by a broad range of individual properties. Risk-taking is one of the key attitudes that includes two opposing views that may motivate or hinder people during the initial stages of business activity. Fear of failure (or vice versa, risk acceptance) is considered a momentous factor in entrepreneurship that acts as a deterrent in business success. Introducing the entire range of risks affecting entrepreneurial activities is the main objective of this study. In addition to the presentation of an illustrative argument of various types of entrepreneurship risk, this paper focuses on two special risks relating to the lower and upper limits of entrepreneurship risk range. Additionally, the rate of entrepreneurial activities under such risks has been calculated by applying the conditional probability equation and dataset gathered by Global Entrepreneurship Monitor (GEM) in 2016. By applying this formula on the GEM data of 65 countries, two different types of risk named safe risk (SR) and hazardous risk (HR) have been introduced. Each risk type leads to a business with a specific level of success. The entrepreneurial activities correspond with these two risk types calculated in this paper with the names of safe and hazardous entrepreneurial activity rates. As a result, this categorization indicates that the weakness in some individual factors such as perceived opportunities and capabilities is the main reason leading to business failures.

Keywords: Risk acceptance; Fear of failure; Conditional probability function; Individual factors; Safe risk (SR); Hazardous risk (HR); Rate of safe entrepreneurial activities; Rate of hazardous entrepreneurial activities (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s40497-021-00291-0

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