The attitude toward the risk of entrepreneurial activity: Evidence from Chile
Date
2010
Type:
Working Paper
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Journal Title
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Volume Title
Publisher
School of Business and Economics, Universidad del Desarrollo
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Abstract
We study the factors that may influence the attitude toward the risk of entrepreneurial activity
and its impact on the propensity to become an entrepreneur. We proxy the attitude toward risk by using the answers
to the fear of failing question contained in the Global Entrepreneurship Monitor survey. Interesting results are found.
First, we found that being male, having more years of formal education and believing to have the necessary skills to
developing a new venture have all a negative effect on an individual`s attitude toward risk and therefore, increase
the probability of becoming an entrepreneur. Age affects the risk in a quadratic way (first positive but after to some
point negative). Finally, contrary to conventional wisdom, having the experience of shutting down a business has no
effect on the risk`s attitude for developing a new venture in the Chilean case
Description
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Citation
Academia, Revista Latinoamericana de AdministraciĂłn, 46, 2011, 72-80
Keywords
risk aversion, Entrepreneurship, GEM, fear of failing