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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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    1. 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.

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