Risk propensity differences between entrepreneurs and managers: A meta-analytic review.

Abstract

Research examining the relative risk-taking propensities of entrepreneurs and managers has produced conflicting findings and no consensus, posing an impediment to theory development. To overcome the limitations of narrative reviews, the authors used psychometric meta-analysis to mathematically cumulate the literature concerning risk propensity differences between entrepreneurs and managers. Results indicate that the risk propensity of entrepreneurs is greater than that of managers. Moreover, there are larger differences between entrepreneurs whose primary goal is venture growth versus those whose focus is on producing family income. Results also underscore the importance of precise construct definitions and rigorous measurement.

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