A CULTURAL APPROACH TOWARDS RISK PROPENSITY AND TOLERANCE FOR AMBIGUITY OF ENTREPRENEURS

Ferda Erdem

A CULTURAL APPROACH TOWARDS RISK PROPENSITY AND TOLERANCE FOR AMBIGUITY OF ENTREPRENEURS

Year 2001, Volume: 1 Issue: 2, 43 - 62, 01.11.2001

Abstract

While taking and executing decisions and undertaking risks regarding the results of those decisions in a context of uncertainty is the main function of entrepreneurship, tolerance for ambiguity and risk-taking propensity are seen as major characteristics of entrepreneurs that differentiate them from others. However, this is a complex phenomenon that can not be explained only by the personality traits of an entrepreneur or by individual perception processes. Cultural approach which allows a comprehensive perspective for this topic finds it risky to defend a universal entrepreneurial typology which examines the entrepreneur independent of his or her cultural context. The aim of this study is to investigate how the society’s characteristic of high uncertainty avoidance affects the entrepreneurs’ risk-taking propensity and the level of tolerance of Turkey for ambiguity. According to the results of this study on the small business entrepreneurs, tolerance for ambiguity and risk propensity were not high. This result is in accordance with the uncertainty avoidance characteristic of the society. However, the level of tolerance for ambiguity can partially explain the general risk-taking propensity of entrepreneurs. Thus, various research questions based on cultural approach need to be investigated on large sample, comparative studies

Keywords

Entrepreneur, risk propensity, tolerance for ambiguity, uncertainty avoidance, societal culture, cultural approach

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