Changes in Entrepreneurs’ Risk-Taking Propensity Across Venture Phases

Risk-taking propensity is considered a defining characteristic of entrepreneurs. Previous research informs us that risk-taking propensity can be dynamic, changing over the course of an individual’s life, often in response to situational changes. Despite this, temporally driven shifts in entrepreneurs’ risk-taking propensity have been underappreciated by research to date. While some studies investigate risk-taking propensity variation across entrepreneurs in early venture phases, risk-taking propensity differences across all venture phases have not been investigated. To close this gap, we assess variations in risk-taking propensity across groups of entrepreneurs in different venture phases, ranging from early to late stages. In a sample of 266 practicing entrepreneurs, we observe notable differences in risk-taking propensity across venture phases. Early-stage entrepreneurs exhibit higher risk-taking propensity than those in later phases of venture maturity. This has important implications for entrepreneurship research and encourages the consideration of temporal personality variation and differences within the group of entrepreneurs.