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

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  • 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
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    References listed on IDEAS

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