IDEAS home Printed from https://ideas.repec.org/a/vrs/ngooec/v68y2022i2p65-77n2.html
   My bibliography  Save this article

Does Entrepreneurial Risk-Taking Affect the Business Performance of Micro-Enterprises? Evidence from Skikda in Algeria

Author

Listed:
  • Messikh Ayoub

    (Faculty of Economics, Commerce Sciences and Management Sciences, Laboratory of Economic, Finance & Management (ECOFIMA), The Université 20 Août, 1955, - Skikda, Algeria)

Abstract

According to several previous studies, entrepreneurial risk-taking is an important aspect that can lead to prospective business opportunities, hence improving entrepreneurial outcomes such as enterprise performance. The main purpose of this paper is to examine the extent and degree of impact of entrepreneurial risk-taking (ERT) as one of the dimensions of entrepreneurial mindset on the performance of micro enterprises in Skikda, Algeria. Based on a self-administered survey questionnaire, data were collected from a random sample of 142 micro-enterprises in Skikda. The study adopted descriptive, correlation, and regression analyses to estimate the impact of entrepreneurial risk-taking. collected data were analyzed using the Statistical Package for Social Sciences (SPSS 22) programme. The findings demonstrate that entrepreneurial risk-taking significantly affects the performance of micro enterprises in Skikda. Of the total variance of the performance of micro enterprise’s, 9.2% can be explained by the variability of entrepreneurial risk-taking. A small percentage is expected and can partly be explained by the presence of other factors that affect the performance of these enterprises as well as the negative effects of the COVID-19 pandemic on the process of economic activity and available business opportunities worldwide, especially these very small enterprises. However, the presence of this positive impact calls for a focus on raising the risk-taking spirit of existing and potential Algerian entrepreneurs, by holding conferences, forums and entrepreneurial programmes that enhance and support this characteristic of the entrepreneurial mindset.

Suggested Citation

  • Messikh Ayoub, 2022. "Does Entrepreneurial Risk-Taking Affect the Business Performance of Micro-Enterprises? Evidence from Skikda in Algeria," Naše gospodarstvo/Our economy, Sciendo, vol. 68(2), pages 65-77, June.
    • Handle: RePEc:vrs:ngooec:v:68:y:2022:i:2:p:65-77:n:2
    DOI: 10.2478/ngoe-2022-0012
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/ngoe-2022-0012
    Download Restriction: no
    File URL: https://libkey.io/10.2478/ngoe-2022-0012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pejić Bach Mirjana & Merkač Skok Marjana & Suša Dalia, 2016. "Determinants of Entrepreneurial Intentions in ICT Industry: Gender and country of origin perspective," Naše gospodarstvo/Our economy, Sciendo, vol. 62(1), pages 37-45, March.
    2. Dai, Li & Maksimov, Vladislav & Gilbert, Brett Anitra & Fernhaber, Stephanie A., 2014. "Entrepreneurial orientation and international scope: The differential roles of innovativeness, proactiveness, and risk-taking," Journal of Business Venturing, Elsevier, vol. 29(4), pages 511-524.
    3. Sharon A. Alvarez & Jay B. Barney, 2007. "The Entrepreneurial Theory of the Firm," Journal of Management Studies, Wiley Blackwell, vol. 44(7), pages 1057-1063, November.
    4. Aluisius Hery Pratono, 2018. "Does firm performance increase with risk-taking behavior under information technological turbulence?," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 19(4), pages 361-378, August.
    5. Alvarez, Sharon A., 2007. "Entrepreneurial rents and the theory of the firm," Journal of Business Venturing, Elsevier, vol. 22(3), pages 427-442, May.
    6. Bostjan Antoncic, 2003. "Risk Taking In Intrapreneurship: Translating The Individual Level Risk Aversion Into The Organizational Risk Taking," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 1-23.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhaoyang Guo & Wei Jiang, 2020. "Risk-taking for entrepreneurial new entry: risk-taking dimensions and contingencies," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 739-781, June.
    2. R. Sandra Schillo & Ajax Persaud & Meng Jin, 2016. "Entrepreneurial readiness in the context of national systems of entrepreneurship," Small Business Economics, Springer, vol. 46(4), pages 619-637, April.
    3. Cook, Michael L. & Burress, Molly J. & Iliopoulos, Constantine, 2008. "New Producer Strategies: The Emergence of Patron-Driven Entrepreneurship," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44397, European Association of Agricultural Economists.
    4. Kalinic, Igor & Brouthers, Keith D., 2022. "Entrepreneurial orientation, export channel selection, and export performance of SMEs," International Business Review, Elsevier, vol. 31(1).
    5. Zhongfeng Su, 2021. "The co-evolution of institutions and entrepreneurship," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1327-1350, December.
    6. Middleton, Stuart & Liesch, Peter W. & Steen, John, 2011. "Organizing time: Internationalization narratives of executive managers," International Business Review, Elsevier, vol. 20(2), pages 136-150, April.
    7. Nicholas Argyres, 2011. "Using Organizational Economics to Study Organizational Capability Development and Strategy," Organization Science, INFORMS, vol. 22(5), pages 1138-1143, October.
    8. Heriyanto Meyzi & Febrian Achmad Fajri & Sugiarto Meilan & Handoko Tito & Syofian, 2021. "Competitive Advantage in Small and Medium Enterprises (SMEs): A Systematic Mapping Study," Management Theory and Studies for Rural Business and Infrastructure Development, Sciendo, vol. 43(1), pages 77-89, March.
    9. Suvi Nenonen & Kaj Storbacka & Charlotta Windahl, 2019. "Capabilities for market-shaping: triggering and facilitating increased value creation," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 617-639, July.
    10. Daniel Leunbach & Truls Erikson & Max Rapp-Ricciardi, 2020. "Muddling through Akerlofian and Knightian uncertainty: The role of sociobehavioral integration, positive affective tone, and polychronicity," Journal of International Entrepreneurship, Springer, vol. 18(2), pages 145-164, June.
    11. Jiang, Yi Dragon & Straub, Caroline & Klyver, Kim & Mauer, René, 2021. "Unfolding refugee entrepreneurs' opportunity-production process — Patterns and embeddedness," Journal of Business Venturing, Elsevier, vol. 36(5).
    12. Franco Malerba & Maureen McKelvey, 2020. "Knowledge-intensive innovative entrepreneurship integrating Schumpeter, evolutionary economics, and innovation systems," Small Business Economics, Springer, vol. 54(2), pages 503-522, February.
    13. Patrick Kreiser & Louis Marino & Donald Kuratko & K. Weaver, 2013. "Disaggregating entrepreneurial orientation: the non-linear impact of innovativeness, proactiveness and risk-taking on SME performance," Small Business Economics, Springer, vol. 40(2), pages 273-291, February.
    14. Nachiket Bhawe & Shaker A. Zahra & Chen Chao & Garry D. Bruton, 2021. "Protectionist policies and diversity of entrepreneurial types," Small Business Economics, Springer, vol. 56(2), pages 789-807, February.
    15. Vladi Finotto & Anna Moretti, 2014. "Unveiling the founder effect: a conceptual framework of entrepreneurial imprinting," Working Papers 07, Department of Management, Università Ca' Foscari Venezia.
    16. Darcy W E Allen, 2020. "When Entrepreneurs Meet:The Collective Governance of New Ideas," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number q0269.
    17. Javalgi, Rajshekhar (Raj) G. & Todd, Patricia R. & Johnston, Wesley J. & Granot, Elad, 2012. "Entrepreneurship, muddling through, and Indian Internet-enabled SMEs," Journal of Business Research, Elsevier, vol. 65(6), pages 740-744.
    18. Tuija Mainela & Vesa Puhakka & Per Servais, 2015. "Boundary crossing for international opportunities," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 173-185, September.
    19. Ding, Yuan & Nowak, Eric & Zhang, Hua, 2010. "Foreign vs. domestic listing: An entrepreneurial decision," Journal of Business Venturing, Elsevier, vol. 25(2), pages 175-191, March.
    20. David, Audretsch & Donald, Kuratko & Albert, Link, 2015. "Making Sense of the Elusive Paradigm of Entrepreneurship," UNCG Economics Working Papers 15-4, University of North Carolina at Greensboro, Department of Economics.

    More about this item

    Keywords

    Risk taking; Entrepreneurship; Business performance; Micro enterprises; Skikda; Algeria;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:ngooec:v:68:y:2022:i:2:p:65-77:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.