A Study of Effects of Entrepreneurial Passion and Risk Appetite on Entrepreneurial Performance

Because of the rapid change of industrial environment in past years, the fierce global competition hastens the emergence of entrepreneurs and increases the proportion of new ventures annually. Under the formation of M-shaped society and the emergence of emerging economies, domestic economic environments change so rapidly that small and medium enterprises are facing strict challenges. In face of fiercely competitive environments, the promotion of entrepreneurial performance to acquire competitive advantages is a primary issue for the practical management of entrepreneurs. Aiming at young entrepreneurs in China, the young entrepreneurs in cross-strait youth entrepreneurship bases are surveyed in this study. Total 200 copies of questionnaire are distributed, and 157 valid copies are retrieved, with the retrieval rate 79%. The research results conclude that (1) entrepreneurial passion presents significant effects on financial performance, (2) entrepreneurial passion shows remarkable effects on non-financial performance, (3) risk appetite reveals notable effects on financial performance, (4) risk appetite appears significant effects on non-financial performance, (5) entrepreneurial passion and risk appetite could remarkably promote financial performance, and (6) entrepreneurial passion and risk appetite could notably enhance non -financial performance. Based on the research results, suggestions are proposed to help entrepreneurs create favourable performance and extend survive years.