Successful Entrepreneurs Minimize Risk

Posted: 19 Apr 2013

See all articles by Johann Peter Murmann

Johann Peter Murmann

University of St. Gallen; UNSW Australia Business School - AGSM

Date Written: June 1, 2012

Abstract

Many scholars see entrepreneurs as action-oriented individuals who use rules of thumb and other mental heuristics to make decisions, but who do little systematic planning and analysis. We argue that what distinguishes successful from unsuccessful entrepreneurs is precisely that the former vary their decision-making styles, sometimes relying on heuristics and sometimes relying on systematic analysis. In our proposed framework, successful entrepreneurs assess their level of expertise and the level of ambiguity in a particular decision context and then tailor their decision-making process to reduce risk.

Keywords: entrepreneurial decision making, entrepreneurial risk taking, new ventures, performance, theory

Suggested Citation

Murmann, Johann Peter, Successful Entrepreneurs Minimize Risk (June 1, 2012). Australian Journal of Management, Vol. 38, No. 1, 2013, Available at SSRN: https://ssrn.com/abstract=2253385

Johann Peter Murmann (Contact Author)

University of St. Gallen ( email )

Dufourstrasse 40a
Institute of Management and Strategy
St.Gallen, 9000
Switzerland
+41 71 224 23 64 (Phone)

HOME PAGE: http://professor-murmann.net

UNSW Australia Business School - AGSM ( email )

UNSW Sydney, NSW 2052
Australia
+61-2-9385-9733 (Phone)

HOME PAGE: http://professor-murmann.net

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
498
PlumX Metrics