Performance implications of the interrelationship between risk-taking and family support for women-owned businesses: evidence from South Africa

Extant entrepreneurship literature has often accentuated the importance of understanding entrepreneurial risk preferences, as excessive or averse behaviours towards risk could significantly affect entrepreneurial outcomes. Women entrepreneurs, in particular, have been noted to be more risk averse than their male counterparts, however, little is known about how the risk-taking propensity of women entrepreneurs influences the performance of their businesses, especially in developing countries. This study made a contribution in this domain by examining the association between risk-taking propensity and the performance of women-owned businesses in a developing world context. Also, given the increasing evidence of a strong interlink between the business and family context for women entrepreneurs, this study postulated that the risk-taking to performance nexus could be moderated by family support. The findings indicated a positive association between risk-taking propensity and the performance of women-owned businesses. Moreover, this association was positively moderated by financial and emotional family support. The study makes a contribution to the current knowledge base by illustrating the interrelation between the trait approach and the family embeddedness approach on entrepreneurial outcomes for women entrepreneurs. Furthermore, the policy and practical implications of the findings are discussed.