When risk-aversion promotes enterprise formation

George Abuchi Agwu

Applied Economics Letters, 2020, vol. 27, issue 21, 1726-1729

Abstract: In this article, risk-aversion promotes rural enterprises formation contrasting with the theoretical motivations of new entrepreneurs. Rather than risk seeking, rural entrepreneurs are risk-averse, and instead of opportunities, the operators seek livelihood insurance. This finding indicates the value of insurance penetration in the rural areas.

Date: 2020
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DOI: 10.1080/13504851.2020.1716937

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