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Theory conjectures that entrepreneurs are more likely than others to tolerate uncertainty when making choices. Empirical evidence, however, is mixed. In order to get new insight on entrepreneurs’ tendency to make choices under uncertainty, we performed a series of laboratory based real money games experiments investigating the circumstances under which entrepreneurs are more likely to choose uncertainty vis-à-vis certainty. Drawing on prospect theory, we argue that entrepreneurs are less sensitive to framing effects and they are more likely than comparable others to choose consistently between two prospects that share everything in common but information about probabilities. The study finds support for our arguments, indicating entrepreneurs’ preferences towards uncertainty is less affected by information about probabilities. Results hold after controlling for a number of alternative explanations, including status quo bias, loss aversion and disappointment theory. These results have fundamental implications for our understanding of factors guiding entrepreneurial choices under uncertainty. Not only the entrepreneurs themselves but also for their stakeholders.
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