The relationship between risk-taking propensity and demographic characteristics among MSEs in Malaysia

Micro- and Small Enterprises (MSEs) contribute significantly
to economic development, and this could be influenced by demographic
factors and risk-taking propensity. This study assesses the relationship between
risks-taking propensity and demographic characteristics of Malaysian MSEs
owners. A stratified sample totalling 260 names and addresses was derived
from the Small and Medium Industries Development Corporation (SME Corp).
The Risk Attitudes Inventory (RAI) was used in the survey to measure
entrepreneurial risk-taking propensity, which presented with 15 hypothetical
situations. The questions were to stimulate reflection and thought about one’s
risk-taking style and beliefs. The scale that was used for the measurement
of risk-taking propensity consisted of three levels: low, medium and high.
The study concludes that there is no relationship between risk-taking propensity
and business owners’ demographic characteristics such as gender, business
owners’ age, education level and their business experience.