The risk preferences of entrepreneurs in Indonesia
MetadataShow full item record
© 2016 Board of Trustees of the Bulletin of Economic Research and John Wiley & Sons Ltd.Entrepreneurship is known to be important for innovation and economic growth, but relatively little attention has been paid to entrepreneurs in developing countries. We examined an important aspect of entrepreneurship: risk-taking. We analysed the Indonesian Family Life Survey and compared risk preferences between entrepreneurs and non-entrepreneurs. We found that risk tolerant workers were more likely to be entrepreneurs than risk averse workers by about 5 percentage points, or about 20 percent of the proportion of entrepreneurs in the labour force. The results imply that not all entrepreneurs in Indonesia are pushed into the sector; some actively take risks and seek innovations.
Showing items related by title, author, creator and subject.
Lee, S.; Yamakawa, Y.; Peng, Mike; Barney, J. (2011)How do bankruptcy laws as formal institutions affect entrepreneurship development around the world? Do entrepreneur-friendly bankruptcy laws encourage more entrepreneurship development at a societal level? We posit that ...
Success factors for new business start-up in Hong Kong: a study of the external networks of small business start-upMa, Victor Kee Kin (2009)Most small new firms face problems in surviving the gestation process and achieving a viable performance thereafter because of the very fact of their smallness and newness. Due to a lack of internal resources, entrepreneurs ...
Lasrado, L.; Lugmayr, Artur (2013)The phenomenon of the crowd on the Internet is widely well known, as well as its collaborative power. Companies use the power of the crowd to improve their products, for marketing campaigns, or co-create their products ...