Risk Taking Propensity of Entrepreneurs.

The risk taking propensities of entrepreneurs of new ventures were objectively obtained and compared to those of newly promoted managers, to those of newly hired managers and to normative data developed for the measurement instrument. Previous research on the risk taking propensity of entrepreneurs has been subjective, noncomparative and used only established entrepreneurs as participants. The Kogan-Wallach Choice Dilemmas Questionnaire was administered to a total of ninety-three participants. No significant difference was found to exist at the .15 level of confidence between the entrepreneurs and the managers. No significant difference was found to exist at the .25 level between the distribution of scores for entrepreneurs and the distribution of scores from the normative study. The findings suggest that risk taking propensity may not be a distinguishing characteristic of entrepreneurs. Such findings refute currently accepted assumptions.