Entrepreneurial Time Commitment And Risk

Abstract

This article examines the relationship between risk perception, risk propensity and the ideal duration of entrepreneurial commitment. Risk perception is the basic entrepreneurial characteristic, aiming to the control and avoidance of uncertainty. Related to the ideal duration of entrepreneurial commitment, risk perception leads to the development of risk propensity and perception of time. Risk perception depends on factors such as cultural idiosyncrasies, knowledge and flexibility etc, while risk propensity is being affected by external macroeconomic variables and some important personal traits. The average duration of entrepreneurial commitment depends on macro-environmental variables, cultural idiosyncrasies, personal characteristics and the specifics of the project and entrepreneurial motives. The findings of this paper have implications on both company level and macro-level and consequently have significant policy implications.