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Understanding the Entrepreneurial Mind pp 259–281Cite as

Perceptions of Efficacy, Control, and Risk: A Theory of Mixed Control

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Part of the book series: International Studies in Entrepreneurship ((ISEN,volume 24))

Entrepreneurship involves the establishment of new organizations and the development of new economic activities. Its consequences have not been experienced before and thus are rife with risk and uncertainty. Those who engage in such activities have consequently been considered as being willing to take on more risk and uncertainty than others. Empirical work, however, has demonstrated that entrepreneurs are not willing to take more risks than non-entrepreneurs (Busenitz and Barney 1997; Miner and Raju 2004; Palich and Bagby 1995; Wu and Knott 2006). Therefore, a corresponding difference in general risk propensity hypothesis is not supported by research findings. Alternatively, a difference in risk perception hypothesis has been suggested. In other words, even if entrepreneurs and non-entrepreneurs have similar risk preferences, entrepreneurs may perceive less risk by overestimating their chances for success (Baron 1998).

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Authors and Affiliations

  1. Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group, Kahlaische Str. 10, D-07745, Jena, Germany

    Erik Monsen & Diemo Urbig

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  1. Erik Monsen
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  2. Diemo Urbig
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Correspondence to Erik Monsen .

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Editors and Affiliations

  1. Global Entrepreneurship Center, Florida International University, SW., 8th Street 11200, Miami, 33199, U.S.A.

    Alan L. Carsrud

  2. Dept. Business Administration, Swedish University Abo, Henriksgatan 7, Turku, 20500, Finland

    Malin Brännback

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Monsen, E., Urbig, D. (2009). Perceptions of Efficacy, Control, and Risk: A Theory of Mixed Control. In: Carsrud, A., Brännback, M. (eds) Understanding the Entrepreneurial Mind. International Studies in Entrepreneurship, vol 24. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-0443-0_12

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