Understanding risk among entrepreneurs in decision-making role

Aims: The domain of business decision-making is inherently susceptible to risks due to the all-encompassing unpredictability that forms the basis of anticipated results from investment selections. This unpredictability has the potential to result in monetary setbacks and even the demise of businesses. This paper explores the entrepreneurs’ understanding of risk and how such decisions are affected by risk. Study design: The qualitative research design in this study employed the interpretive research approach as its underlying philosophy. Methodology: Employing a qualitative research methodology, this study embarks on a comprehensive exploration of the multifaceted interplay between risk and entrepreneurial investment decision-making. This investigation draws theoretical insights from the Neoclassical Investment Theory, thus enhancing its analytical framework. To gather robust insights, 20 in-depth interviews were conducted among entrepreneurs in different industries and subjected to thematic analysis. Results: The results revealed that an entrepreneur’s behavior related to investment decisions is interpersonal under risk. Furthermore, the responses that were weighted to one side implied that the level of risk controls entrepreneurs' desire to expand their investment strategies. Conclusion: The research findings indicate that risk remains a prevailing concern within the realm of investment decisions, as it is an inevitable aspect that can be mitigated through effective management. Investments devoid of risk may lack the potential for substantial returns, as overcoming risk can propel a business toward unparalleled achievements. The degree to which risk acts as a deterrent to investment hinges on an investor's personal risk tolerance. Embracing the adage' prevention is better than cure,' it is imperative for managers to proactively address risk and its consequences by employing methodologies of risk analysis.