Risk Attitudes and Profits among Small Enterprises in Nigeria
AbstractThis paper analyses the effect of risk attitudes of firm owners on profits among micro and small enterprises (MSEs) in Lagos, Nigeria. Higher risk perceptions are shown to have a significant positive effect on profits, whereas risk propensity has a negative or no effect. Education, age, being male, and firm size are all positively related to profit, while young firms earn lower profits. Overall, the results suggest that being aware and dealing cautiously with risk leads to higher profitability.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 10-053/3.
Date of creation: 19 May 2010
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Web page: http://www.tinbergen.nl
entrepreneurship; risk perception; risk behavior; profit; MSEs;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-02-26 (Africa)
- NEP-ALL-2011-02-26 (All new papers)
- NEP-ENT-2011-02-26 (Entrepreneurship)
- NEP-SBM-2011-02-26 (Small Business Management)
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