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Keywords:
entrepreneurship entrepreneurial skills entrepreneurship curricula risk propensity risk tolerance
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Risk tolerance: A perspective on entrepreneurship education
Abstract
The field of entrepreneurship in South Africa has certain unique
although limiting characteristics, including an unconvincing enabling
environment, a weak entrepreneurial culture and an emergent, and
therefore limited, body of knowledge surrounding the topic of
entrepreneurship. Consequently, entrepreneurship in South Africa
does not hold a strong position in terms of entrepreneurial activity
and, in fact, is generally approached with a degree of scepticism. At
the same time, Maas & Herrington in the Global Entrepreneurship
Monitor (GEM) (Maas & Herrington 2006: 12) indicate categorically
that an increase in entrepreneurial activity is highly dependent on
effective entrepreneurship education. This study confirmed the fact
that education per se may increase the current Total Entrepreneurial
Activity rate of 5.29% in South Africa, as compared with 14.8% in
other developing countries. An aspect of entrepreneurship that is currently not adequately addressed in entrepreneurship education and training literature is that of risk tolerance and risk-taking of the entrepreneur. Debate on whether entrepreneurs exhibit higher risk tolerance than other
managers and full-time employed individuals is ongoing and
raises the question of whether risk tolerance should be included in
entrepreneurship curricula. This study seeks to elaborate on this
debate.
although limiting characteristics, including an unconvincing enabling
environment, a weak entrepreneurial culture and an emergent, and
therefore limited, body of knowledge surrounding the topic of
entrepreneurship. Consequently, entrepreneurship in South Africa
does not hold a strong position in terms of entrepreneurial activity
and, in fact, is generally approached with a degree of scepticism. At
the same time, Maas & Herrington in the Global Entrepreneurship
Monitor (GEM) (Maas & Herrington 2006: 12) indicate categorically
that an increase in entrepreneurial activity is highly dependent on
effective entrepreneurship education. This study confirmed the fact
that education per se may increase the current Total Entrepreneurial
Activity rate of 5.29% in South Africa, as compared with 14.8% in
other developing countries. An aspect of entrepreneurship that is currently not adequately addressed in entrepreneurship education and training literature is that of risk tolerance and risk-taking of the entrepreneur. Debate on whether entrepreneurs exhibit higher risk tolerance than other
managers and full-time employed individuals is ongoing and
raises the question of whether risk tolerance should be included in
entrepreneurship curricula. This study seeks to elaborate on this
debate.
