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Risk, balanced skills and entrepreneurship

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journal contribution
posted on 2023-06-21, 06:02 authored by Chihmao Hsieh, Simon Parker, C Mirjam van Praag
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.

History

Publication status

  • Published

File Version

  • Published version

Journal

Small Business Economics

ISSN

0921-898X

Publisher

Springer

Issue

2

Volume

48

Page range

287-302

Department affiliated with

  • Business and Management Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2016-11-14

First Open Access (FOA) Date

2017-04-12

First Compliant Deposit (FCD) Date

2017-04-12

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