DEVELOPING A TAXONOMY FOR IDENTIFYING ENTREPRENEURIAL RISK: AN EMPIRICAL STUDY ON ENTREPRENEURIAL RISK PATTERNS OF BUSINESS ENTERPRISES
Vol. Volume 19, Number 1 March/2014
D. Anthony Miles
The purpose of this study is to examine entrepreneurial risk and market behavior patterns of small business Enterprises (SME). A sample (N = 201) of SMEs across 11 industries. The industries were classified into four categories: (a) consumer competitive-type industries; (b) consumer monopoly-type industries; (c) commodity-type industries and (d) semi-commodity-type industries. The objective of this study is two-fold: (a) examine market behavior of SMEs; and (b) to determine if SMEs exhibited particular entrepreneurial risk behavioral patterns. This study examined entrepreneurial risk patterns, which determines if one SME has a higher Entrepreneurial Risk Orientation (ERO) index compared to another. This study used a Principle Component Analysis (PCA). A multivariate regression analysis was also used to measure the industry type as a predictor variable. The results of the study indicated there were eight factors of entrepreneurial risk factors that affect SMEs.
Entrepreneurial risk; commodity-type industries; entrepreneurial risk patterns.