Author

  • Norfaezah Mohd Shahren

    • Faculty of Business and Management, MARA University of Technology, Malaysia
    • Malaysia

  • Mastura Ayob

    • Faculty of Business and Management, MARA University of Technology, Malaysia
    • Malaysia

  • Siti Nazirah Omar

    • Faculty of Business and Management, MARA University of Technology, Malaysia
    • Malaysia

Abstract

The perception of risk has a substantial impact on the decision-making process and allocation of resources in entrepreneurship, which in turn affects business performance and the identification of strategic growth possibilities. Entrepreneurs frequently encounter situations characterized by uncertainty and ambiguity. Their perception of risk plays a crucial role in determining whether they adopt a cautious or proactive approach to decision-making. Perceiving a high level of risk might result in the adoption of conservative measures, which may restrict the allocation of funds toward growth projects. On the other hand, when entrepreneurs perceive a low level of risk, they are more likely to allocate resources aggressively, which allows them to pursue growth-oriented strategies. This study examines the impact of perceived risk on entrepreneurial performance by analyzing how risk perception influences decision-making and resource allocation. The results emphasize the significance of understanding perceived risk levels to improve business performance and boost employee motivation. Future research should conduct empirical investigations to examine the correlation between perceived risk and motivation, taking into account both inner and extrinsic elements to gain a thorough understanding of how they interact.

Keywords

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How to Cite

Mohd Shahren, N., Ayob, M., & Omar, S. N. (2024). The Influence of Perceived Risk on the Performance of the Entrepreneur. Information Management and Business Review, 16(3(I), 328-338. https://doi.org/10.22610/imbr.v16i3(I).3864

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Vol. 16 No. 3(I) (2024) Event Management, Control Systems & Digital Health View issue contents

Published

2024-09-06

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