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Risk attitudes and entrepreneurial motivations: Evidence from transition economies

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  • Ahunov, Muzaffar
  • Yusupov, Nurmukhammad

Abstract

Most studies on risk attitudes of entrepreneurs do not distinguish between those who want to be self-employed and those who have to run their own business for survival, or entrepreneurs by choice vs. by necessity. We examine the relationship between individual risk preferences and likelihood of entrepreneurial entry among these two groups in a cross section of countries with transition economies. We obtain robust results that those with higher degree of risk tolerance are more likely to be self-employed by choice.

Suggested Citation

  • Ahunov, Muzaffar & Yusupov, Nurmukhammad, 2017. "Risk attitudes and entrepreneurial motivations: Evidence from transition economies," Economics Letters, Elsevier, vol. 160(C), pages 7-11.
    • Handle: RePEc:eee:ecolet:v:160:y:2017:i:c:p:7-11
    DOI: 10.1016/j.econlet.2017.08.016
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    References listed on IDEAS

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    1. David N Margolis, 2014. "By Choice and by Necessity: Entrepreneurship and Self-Employment in the Developing World," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 419-436, September.
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    Cited by:

    1. Zimei Liu & Yezhi Ren & Yanlan Mei, 2022. "How Does Internet Use Promote Farmer Entrepreneurship: Evidence from Rural China," Sustainability, MDPI, vol. 14(24), pages 1-15, December.
    2. Murat Yalcintas & Oyk㜠Iyigãœn & Gokhan Karabulut, 2023. "Personal Characteristics And Intention For Entrepreneurship," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 68(02), pages 539-561.
    3. Muzaffarjon Ahunov & Dilnovoz Abdurazzakova & Nurmukhammad Yusupov, 2019. "Who creates jobs in transition economies? The role of entrepreneurial risk preferences," Economics Bulletin, AccessEcon, vol. 39(3), pages 1876-1886.
    4. Bach Nguyen & Christophe Schinckus & Nguyen Phuc Canh & Su Dinh Thanh, 2021. "Economic Policy Uncertainty and Entrepreneurship: A Bad for a Good?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 30(1), pages 81-133, March.

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