Risk propensity differences between entrepreneurs and managers: A meta-analytic review

Research examining the relative risk-taking propensities of entrepreneurs a nd managers has produced conflicting findings and no consensus, posing an i mpediment to theory development. To overcome the limitations of narrative r eviews, the authors used psychometric meta-analysis to mathematically cumul ate the literature concerning risk propensity differences between entrepren eurs and managers. Results indicate that the risk propensity of entrepreneu rs is greater than that of managers. Moreover, there are larger differences between entrepreneurs whose primary goal is venture growth versus those wh ose focus is on producing family income. Results also underscore the import ance of precise construct definitions and rigorous measurement.