Prior Exposure to Entrepreneurial Experience and Risk Perception: a Comparative Study of Potential Entrepreneurs in Canada and China

This project investigated how potential entrepreneurs evaluate opportunities in the pre-startup phase of a new venture creation process. Based on Busenitz and Lau’s (1997) cross-cultural cognitive model of new venture creation, I examined the relationship between risk perception and a potential entrepreneur’s intention to start a venture, as well as the moderating effect of a potential entrepreneur’s prior exposure to entrepreneurial experience on this relationship. In addition, I looked at the impact of uncertainty avoidance orientation on risk perception using samples collected from Canada and China. Results showed that risk perception was negatively related to entrepreneurial intention. However, it was found that one’s prior exposure to entrepreneurial experience did not offset the negative impact of high risk perception on entrepreneurial intention. Interestingly, Canadian students from a society with lower levels of uncertainty avoidance were found to be less risk-taking and have higher risk perception than Chinese students.