Part-Time Entrepreneurship and Risk Tolerance
DOI:
https://doi.org/10.33423/jabe.v20i1.321Keywords:
Business, Finance, Economics, EntrepreneurshipAbstract
This paper looks at the relationship between part-time entrepreneurship and risk tolerance. Part-time entrepreneurs split their time between entrepreneurial ventures and wage employment. I offer a simple model of entrepreneurial entry where individuals choose part-time, instead of full-time, entrepreneurship because they want to gain basic experience. This might be product, industry or market experience; or one related to individual-specific characteristics. People with a lower level of risk tolerance will need to first spend time acquiring this experience, and hence opting for an initial part-time involvement, before growing a full-size business. Empirical tests of the model implications are included.
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Published
2018-05-01
How to Cite
Petrova, K. (2018). Part-Time Entrepreneurship and Risk Tolerance. Journal of Applied Business and Economics, 20(1). https://doi.org/10.33423/jabe.v20i1.321
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