Differences in risk assessment ability between entrepreneurs and non-entrepreneurs

Abstract

The aim of this exploratory study was to determine whether there was any significance to the proposition that the ability of individuals to assess entrepreneurial risks differed between entrepreneurs and non-entrepreneurs, with a particular focus on the risk identification and risk prioritisation abilities.A survey strategy was followed which made use of a case study exercise to ascertain what risks the sample groups of entrepreneurs and non-entrepreneurs identified. Demographics and other risk variables, such as risk propensity and risk perception, were also excluded to provide context and eliminate certain alternative explanations.No significant differences were found between entrepreneurs and non-entrepreneurs with respect the risks that they identified in the case study exercise. Entrepreneurs perceived the case study as more favourable and had a higher risk propensity. Entrepreneurs also found the case study exercise more difficult than non-entrepreneurs.