describes the willingness to make decisions even under uncertainty and to accept possible failure.
People with a high risk propensity are prepared to accept failure in the sense of financial as well as personal loss, provided they value the prospect of success more highly than the probability of failure.
Even the first formal definition of "entrepreneurship" by Richard Cantillon in 1755 includes the subject of risk-taking as a distinguishing feature from other "businessmen": Cantillon describes the entrepreneur as an "adventurer" with the characteristic ability to recognize fruitful business opportunities and to exploit them while taking a risk.
Radical innovation entails a far higher risk than moderate growth with continuous small innovation steps. In this respect, the willingness to take high risks is a fundamental prerequisite for tackling such an undertaking in the first place. However, in order to lead it to success and not to rush headlong into the adventure, only to go down with flying colors, the risk propensity should be in a high, but still controlled range.
From wpadmin|2023-05-16T06:56:06+02:00May16, 2023|