On Risk-taking Behavior Of Entrepreneur

Based on two theories: entrepreneurship theory and the decision behavior & behavioral economics, the risk-taking behavior of entrepreneur is researched. Questionnaire and statistic test method are applied, combining qualitative analysis and quantitative analysis.Firstly, relative research status quo home and abroad is summarized. The contents and developments relevant to this research of the two theories are introduced. Then the boundary of entrepreneur, entrepreneurial form and the development of entrepreneur are discussed.Secondly, the decision manner entrepreneurs manifest in decision is deeply analyzed. A comparative research between that of entrepreneur and manager is done.Thirdly, factors influencing the risk-taking behavior of entrepreneur are deeply discussed, including risk propensity, risk perception, entrepreneur endowment, expected return and the environment: influences of risk propensity and risk perception on risk-taking behavior of entrepreneur are firstly explored and factors affecting risk perception are analyzed. Then the influences of entrepreneur endowment are analyzed, including human capital, entrepreneurial capital and social capital. Afterwards, influences of entrepreneur's expected return are discussed, and a theoretical model of expected return and desire level is presented. Finally, influences of the environment are discussed, including individual environment and macro environments such as industry, policy, finance, economy and culture.Fourthly, according to the above analysis, an integrative model about factors of entrepreneur's risk-taking behavior is established. After the regression and test of the model, a path chart and the relative path analysis are presented.To sum up, several conclusions are achieved: entrepreneurs are bounded rational and will more readily to use heuristics and biases than managers in decision. The reason why entrepreneurs decide to build up the enterprise is not that their propensity is higher than others, but that they perceive less risk than others. Moreover, illusion of control that entrepreneurs manifest in decision-making is notably related to risk perception, and indirectly influences the risk-taking behavior through risk perception. Finally, in the influencing factors, there is no significant relativity between risk propensity and risk-taking behavior. Other factors have relativity to the risk-taking behavior, but risk perception and expected return are the two most direct and most significant factors.