Risk, balanced skills and entrepreneurship

Hsieh, Chihmao, Parker, Simon C and van Praag, C Mirjam (2017) Risk, balanced skills and entrepreneurship. Small Business Economics, 48 (2). pp. 287-302. ISSN 0921-898X

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Abstract

This paper proposes that risk aversion encourages individuals to invest in balanced skill profiles, making them more likely to become entrepreneurs. By not taking this possible linkage into account, previous research has underestimated the impacts of both risk aversion and balanced skills on the likelihood individuals choose entrepreneurship. Data on Dutch university graduates provide an illustration supporting our contention. We raise the possibility that even risk-averse people might be suited to entrepreneurship; and it may also help explain why prior research has generated somewhat mixed evidence about the effects of risk aversion on selection into entrepreneurship.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Business and Management
Depositing User: Stacey Goldup
Date Deposited: 14 Nov 2016 10:11
Last Modified: 13 Apr 2017 15:18
URI: http://sro.sussex.ac.uk/id/eprint/65428

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