What are micro and small enterprises risk-taking propensity levels?
What are micro and small enterprises(MSEs) risk-taking propensity (RTP) levels? Based on the normal distribution, the MSEs were categorised into three levels, namely low, moderate, and high. Using a descriptive analysis, the level of RTP of micro and small enterprises was examined. Data were gath...
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| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English English English |
| Published: |
2021
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| Subjects: | |
| Online Access: | http://eprints.unisza.edu.my/4461/1/FH03-FPP-21-53490.pdf http://eprints.unisza.edu.my/4461/2/FH03-FPP-21-53489.pdf http://eprints.unisza.edu.my/4461/3/FH03-FPP-21-53488.pdf http://eprints.unisza.edu.my/4461/ |
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| Institution: | Universiti Sultan Zainal Abidin |
| Language: | English English English |
| Summary: | What are micro and small enterprises(MSEs) risk-taking propensity (RTP) levels? Based on the
normal distribution, the MSEs were categorised into three levels, namely low, moderate, and high.
Using a descriptive analysis, the level of RTP of micro and small enterprises was examined. Data
were gathered based on a stratified sample of 260 MSE owners registered with Small and Medium
Industries Development Corporation (SME Corp). This study employed the Risk Attitudes
Inventory (RAI), developed by Calvert (1993), to determine the level of RTP amidst the selected
sample.Results revealed a moderate level of RTP, suggests that MSE owners in Malaysia tend to
be risk-averse entrepreneurs, thus hindering their businesses from flourishing. Often
entrepreneurship sectors are vulnerable to country inertia and low risk-taking propensity. It was
concluded that the level of risk-taking propensity has in variably proven that the latter’s business
performance levels are related directly towards risk taking propensity. MSEs owners, who were
risk averse, will not excel in their respective business. Future studies regarding MSEs should
investigate the demographic factors in line with risk management to describe the significance of
weighing in business characteristics. Hence, future research may want to assess if these models are
indeed viable in risk management and entrepreneurship domains at varying levels of operation,
such as conglomerates. |
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