Abstract:

Studies have shown that risk-taking propensity among businesses results in better business performance. However, the question in place here is, what is the level of risk-taking propensity (RTP) among Micro and Small Enterprises (MSEs)? As such, this study assessed the RTP level amidst MSE owners within the context of East Coast Malaysia. Data were gathered based on a stratified sample of 260 MSE owners registered with Small and Medium Industries Development Corporation (SME Corp). This study employed the Risk Attitudes Inventory (RAI), developed by Calvert (1993), in order to determine the level of RTP amidst the selected sample. The finding, which displayed a moderate level of RTP, suggests that MSE owners in Malaysia tend to be risk-averse entrepreneurs, thus hindering their businesses from flourishing.