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Perceptions of Efficacy, Control, and Risk: A Theory of Mixed Control

In: Understanding the Entrepreneurial Mind


  • Erik Monsen

    (Entrepreneurship, Growth and Public Policy Group)

  • Diemo Urbig

    (Entrepreneurship, Growth and Public Policy Group)


Entrepreneurship involves the establishment of new organizations and the development of new economic activities. Its consequences have not been experienced before and thus are rife with risk and uncertainty. Those who engage in such activities have consequently been considered as being willing to take on more risk and uncertainty than others. Empirical work, however, has demonstrated that entrepreneurs are not willing to take more risks than non-entrepreneurs (Busenitz and Barney 1997; Miner and Raju 2004; Palich and Bagby 1995; Wu and Knott 2006). Therefore, a corresponding difference in general risk propensity hypothesis is not supported by research findings. Alternatively, a difference in risk perception hypothesis has been suggested. In other words, even if entrepreneurs and non-entrepreneurs have similar risk preferences, entrepreneurs may perceive less risk by overestimating their chances for success (Baron 1998).

Suggested Citation

  • Erik Monsen & Diemo Urbig, 2009. "Perceptions of Efficacy, Control, and Risk: A Theory of Mixed Control," International Studies in Entrepreneurship, in: Alan L. Carsrud & Malin Brännback (ed.), Understanding the Entrepreneurial Mind, chapter 0, pages 259-281, Springer.
  • Handle: RePEc:spr:inschp:978-1-4419-0443-0_12
    DOI: 10.1007/978-1-4419-0443-0_12

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    Cited by:

    1. Zellweger, Thomas & Sieger, Philipp & Halter, Frank, 2011. "Should I stay or should I go? Career choice intentions of students with family business background," Journal of Business Venturing, Elsevier, vol. 26(5), pages 521-536, September.
    2. Diemo Urbig & Werner Bönte & Vivien D. Procher & Sandro Lombardo, 2020. "Entrepreneurs embrace competition: evidence from a lab-in-the-field study," Small Business Economics, Springer, vol. 55(1), pages 193-214, June.
    3. Giordano Martínez Karla Roxana & Fernández-Laviada Ana & Herrero Crespo Ángel, 2018. "Influence of Business Incubators Performance on Entrepreneurial Intentions and Its Antecedents during the Pre-incubation Stage," Entrepreneurship Research Journal, De Gruyter, vol. 8(2), pages 1-15, March.
    4. Kibler, Ewald & Mandl, Christoph & Kautonen, Teemu & Berger, Elisabeth S.C., 2017. "Attributes of legitimate venture failure impressions," Journal of Business Venturing, Elsevier, vol. 32(2), pages 145-161.
    5. Emre Şahin Dölarslan & Akin Koçak & Alper Özer, 2017. "“Bats Are Blind?” Cognitive Biases In Risk Perception Of Entrepreneurs," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-13, September.
    6. Kim Klyver & Benson Honig & Paul Steffens, 2018. "Social support timing and persistence in nascent entrepreneurship: exploring when instrumental and emotional support is most effective," Small Business Economics, Springer, vol. 51(3), pages 709-734, October.
    7. Jeroen P.J. de Jong, 2013. "The Decision to Exploit Opportunities for Innovation: A Study of High–Tech Small–Business Owners," Entrepreneurship Theory and Practice, , vol. 37(2), pages 281-301, March.

    More about this item


    Risk Perception; Collective Efficacy; Entrepreneurial Intention; Control Belief; Internal Locus;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations


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