IDEAS home Printed from https://ideas.repec.org/a/spr/jglont/v11y2021i1d10.1007_s40497-021-00291-0.html
   My bibliography  Save this article

The rates of safe and hazardous entrepreneurial activities: introducing the lower and upper limits of entrepreneurship risks

Author

Listed:
  • Nezameddin Faghih

    (Shiraz University)

  • Lida Sarreshtehdari

    (University of Tehran)

  • Ebrahim Bonyadi

    (University of Tehran)

Abstract

Entrepreneurial activities are influenced by a broad range of individual properties. Risk-taking is one of the key attitudes that includes two opposing views that may motivate or hinder people during the initial stages of business activity. Fear of failure (or vice versa, risk acceptance) is considered a momentous factor in entrepreneurship that acts as a deterrent in business success. Introducing the entire range of risks affecting entrepreneurial activities is the main objective of this study. In addition to the presentation of an illustrative argument of various types of entrepreneurship risk, this paper focuses on two special risks relating to the lower and upper limits of entrepreneurship risk range. Additionally, the rate of entrepreneurial activities under such risks has been calculated by applying the conditional probability equation and dataset gathered by Global Entrepreneurship Monitor (GEM) in 2016. By applying this formula on the GEM data of 65 countries, two different types of risk named safe risk (SR) and hazardous risk (HR) have been introduced. Each risk type leads to a business with a specific level of success. The entrepreneurial activities correspond with these two risk types calculated in this paper with the names of safe and hazardous entrepreneurial activity rates. As a result, this categorization indicates that the weakness in some individual factors such as perceived opportunities and capabilities is the main reason leading to business failures.

Suggested Citation

  • Nezameddin Faghih & Lida Sarreshtehdari & Ebrahim Bonyadi, 2021. "The rates of safe and hazardous entrepreneurial activities: introducing the lower and upper limits of entrepreneurship risks," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 347-359, December.
  • Handle: RePEc:spr:jglont:v:11:y:2021:i:1:d:10.1007_s40497-021-00291-0
    DOI: 10.1007/s40497-021-00291-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40497-021-00291-0
    File Function: Abstract
    Download Restriction: no

    File URL: https://libkey.io/10.1007/s40497-021-00291-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Cacciotti, Gabriella & Hayton, James C. & Mitchell, J. Robert & Giazitzoglu, Andres, 2016. "A reconceptualization of fear of failure in entrepreneurship," Journal of Business Venturing, Elsevier, vol. 31(3), pages 302-325.
    2. Memili, Esra & Eddleston, Kimberly A. & Kellermanns, Franz W. & Zellweger, Thomas M. & Barnett, Tim, 2010. "The critical path to family firm success through entrepreneurial risk taking and image," Journal of Family Business Strategy, Elsevier, vol. 1(4), pages 200-209, December.
    3. Jolanda Hessels & Isabel Grilo & Roy Thurik & Peter Zwan, 2011. "Entrepreneurial exit and entrepreneurial engagement," Journal of Evolutionary Economics, Springer, vol. 21(3), pages 447-471, August.
    4. Ramón Sanguino & Ascensión Barroso & Saikat Gochhait, 2018. "Entrepreneurship in Family Firms in Developed and Developing Countries," Studies on Entrepreneurship, Structural Change and Industrial Dynamics, in: Luísa Cagica Carvalho & Conceição Rego & M.Raquel Lucas & M. Isabel Sánchez-Hernández & Adriana Back (ed.), Entrepreneurship and Structural Change in Dynamic Territories, pages 91-108, Springer.
    5. Christina Whidya Utami, 2017. "Attitude, Subjective Norms, Perceived Behavior, Entrepreneurship Education and Self-efficacy toward Entrepreneurial Intention University Student in Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 475-495.
    6. Patrick M. Kreiser & Louis D. Marino & Pat Dickson & K. Mark Weaver, 2010. "Cultural Influences on Entrepreneurial Orientation: The Impact of National Culture on Risk Taking and Proactiveness in SMEs," Entrepreneurship Theory and Practice, , vol. 34(5), pages 959-984, September.
    7. Yancy Vaillant & Esteban Lafuente, 2007. "Do different institutional frameworks condition the influence of local fear of failure and entrepreneurial examples over entrepreneurial activity?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(4), pages 313-337, July.
    8. Pia Arenius & Maria Minniti, 2005. "Perceptual Variables and Nascent Entrepreneurship," Small Business Economics, Springer, vol. 24(3), pages 233-247, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chong Kyoon Lee & Griffin W. Cottle & Sharon A. Simmons & Johan Wiklund, 2021. "Fear not, want not: Untangling the effects of social cost of failure on high-growth entrepreneurship," Small Business Economics, Springer, vol. 57(1), pages 531-553, June.
    2. Nabiha Nefzi, 2018. "Fear Of Failure And Entrepreneurial Risk Perception," International Journal of Entrepreneurial Knowledge, Center for International Scientific Research of VSO and VSPP, vol. 6(2), pages 45-58, December.
    3. Stroe, Silvia & Sirén, Charlotta & Shepherd, Dean & Wincent, Joakim, 2020. "The dualistic regulatory effect of passion on the relationship between fear of failure and negative affect: Insights from facial expression analysis," Journal of Business Venturing, Elsevier, vol. 35(4).
    4. Michael Wyrwich & Michael Stuetzer & Rolf Sternberg, 2016. "Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: a tale of two regions," Small Business Economics, Springer, vol. 46(3), pages 467-492, March.
    5. Franz Huber & Alan Ponce & Francesco Rentocchini & Thomas Wainwright, 2020. "The Wealth of (Open Data) Nations? Examining the interplay of open government data and country-level institutions for entrepreneurial activity at the country-level," SEEDS Working Papers 1120, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Nov 2020.
    6. Kollmann, Tobias & Stöckmann, Christoph & Kensbock, Julia M., 2017. "Fear of failure as a mediator of the relationship between obstacles and nascent entrepreneurial activity—An experimental approach," Journal of Business Venturing, Elsevier, vol. 32(3), pages 280-301.
    7. Sharon A. Simmons & Johan Wiklund & Jonathan Levie & Steve W. Bradley & Sanwar A. Sunny, 2019. "Gender gaps and reentry into entrepreneurial ecosystems after business failure," Small Business Economics, Springer, vol. 53(2), pages 517-531, August.
    8. James Hayton & Gabriella Cacciotti & Andreas Giazitzoglu & J. Robert Mitchell & Chris Ainge, 2013. "Understanding Fear of Failure in Entrepreneurship: A Cognitive Process Framework," Research Papers 0003, Enterprise Research Centre.
    9. Mohd Yasir Arafat & Imran Saleem & Amit Kumar Dwivedi & Adil Khan, 2020. "Determinants of agricultural entrepreneurship: a GEM data based study," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 345-370, March.
    10. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.
    11. Cacciotti, Gabriella & Hayton, James C. & Mitchell, J. Robert & Giazitzoglu, Andres, 2016. "A reconceptualization of fear of failure in entrepreneurship," Journal of Business Venturing, Elsevier, vol. 31(3), pages 302-325.
    12. Dirk De Clercq & Dominic S.K. Lim & Chang Hoon Oh, 2013. "Individual–Level Resources and New Business Activity: The Contingent Role of Institutional Context," Entrepreneurship Theory and Practice, , vol. 37(2), pages 303-330, March.
    13. Erkko Autio & Saurav Pathak & Karl Wennberg, 2013. "Consequences of cultural practices for entrepreneurial behaviors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(4), pages 334-362, May.
    14. Gottschalk, Sandra & Greene, Francis J. & Höwer, Daniel & Müller, Bettina, 2014. "If you don't succeed, should you try again? The role of entrepreneurial experience in venture survival," ZEW Discussion Papers 14-009, ZEW - Leibniz Centre for European Economic Research.
    15. Marian Holienka & Anna Pilková & Michal Munk, 2014. "Business Restart in Visegrad Countries," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 2(1), pages 37-48.
    16. Rachel S. Shinnar & Olivier Giacomin & Frank Janssen, 2012. "Entrepreneurial Perceptions and Intentions: The Role of Gender and Culture," Entrepreneurship Theory and Practice, , vol. 36(3), pages 465-493, May.
    17. Cacciotti, Gabriella & Hayton, James C. & Mitchell, J. Robert & Allen, David G., 2020. "Entrepreneurial fear of failure: Scale development and validation," Journal of Business Venturing, Elsevier, vol. 35(5).
    18. repec:beo:journl:v:62:y:2018:i:216:p:111-130 is not listed on IDEAS
    19. Sander Wennekers & Jolanda Hessels & Chantal Hartog, 2009. "Global Entrepreneurship Monitor 2008 The Netherlands," Scales Research Reports A200914, EIM Business and Policy Research.
    20. Peter van der Zwan & Ingrid Verheul & Roy Thurik & Isabel Grilo, 2009. "Entrepreneurial Progress: Climbing the Entrepreneurial Ladder in Europe and the US," Tinbergen Institute Discussion Papers 09-070/3, Tinbergen Institute, revised 17 Mar 2010.
    21. Pankaj C. Patel & Cornelius A. Rietveld, 2022. "Does globalization affect perceptions about entrepreneurship? The role of economic development," Small Business Economics, Springer, vol. 58(3), pages 1545-1562, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jglont:v:11:y:2021:i:1:d:10.1007_s40497-021-00291-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.