It is easy to think that entrepreneurs are risk-loving individuals because they need to cope with less structured situations and bear the ultimate responsibility for their decision (Xu & Ruef, 2004). However, entrepreneurs are more risk-averse than the general population because they tend to pursue non-pecuniary benefits (Xu & Ruef, 2004). There are several types of non-pecuniary benefits, such as the preference for autonomy and being independent (Xu & Ruef, 2004). In the Koudstaal, Sloof & Van Praag (2015), they measured the differences in attitudes towards risk and uncertainty among entrepreneurs, managers, and employees in a large scale experiment. The results show that entrepreneurs and managers have similar attitudes towards risk (Koudstaal, Sloof & Van Praag, 2015).

In the Holm et al. (2013), they studied whether entrepreneurs differ from other people when to expose in various forms of uncertainty. Findings suggest that entrepreneurs are more willing to accept strategic uncertainty related to economic decisions (Holm et al. 2013). However, entrepreneurs do not show differences compared to ordinary people when it comes to non-strategic forms of uncertainty, such as risk and ambiguity (Holm et al. 2013). Murmann and Sardana (2013) also argued that successful entrepreneurs minimize the risk by carefully assessing both the level of expertise and the level of ambiguity in a particular decision. At the same time, due to resources constrained for many entrepreneurs, re-entry inspection and real-time resource management could reduce the risks (Smith, 2013). Regarding the firm growth, Cucculelli and Ermini (2013) found a negative correlation between the growth and entrepreneurial risk aversion.

The mixed findings of the study of the risk preference call for better techniques and mechanic ways to explore this topic.