NEED FOR ACHIEVEMENT, EDUCATION, AND ENTREPRENEURIAL RISK-TAKING BEHAVIOR

We examined which factors lead to entrepreneurial risk-taking behavior, using the 2 tests of entrepreneurial behavior theory (desirability and feasibility) to investigate how need for achievement and education interact to influence risk-taking propensity. Using data collected from 230 nascent entrepreneurs in a mid-western state in the USA, we tested 2 hypotheses and found empirical evidence to support the 2 tests theory. The results showed that entrepreneurs with high need for achievement and who had received higher education were more willing to take risks than were entrepreneurs with low need for achievement and who had not received higher education. Research implications and limitations are discussed.