The Willingness to Take Risks and the Propensity for Novelty of Entrepreneurs in Different Socio-Economic Landscape

Abstract

The study of individual differences in risk readiness and propensity to novelty of small regional business entrepreneurs in various socio-economic situations (before and during the pandemic) is relevant. The purpose of the article is to investigate the leading distinguishing features of small business entrepreneurs: risk-taking and novelty-seeking in the context of the socio-economic crisis caused by the coronavirus pandemic. Methods. The authors analyzed relevant individual differences of small business entrepreneurs in various socio-economic situations, namely before and after the pandemic on the basis of the innovative approach and the person-activity concept of risk using the standardized methods “Risk Readiness” (A.M. Schubert) and “Tendency to Novelty” (G.A. Zuckerman), the sociological approach and the Student's parametric criterion. Results. The article presents the results of an empirical study. The sample consisted of 79 small business entrepreneurs from the city of Irkutsk and the Irkutsk region. It was found out that before the pandemic, the degree of risk remained in the range of average values (from 3.19 to 3.65), and during the pandemic, a greater number of interviewed entrepreneurs assessed the risks within the extreme values (from 1 to 7). Throughout the study, entrepreneurs showed a tendency to novelty, intolerance to boredom, monotony and lack of variety. The value of the results. In different socio-economic conditions (before and during the pandemic), most regional entrepreneurs are risk-tolerant. they seek for new experience, they feel the need to weaken the psychological barriers that limit releasing their hidden feelings and needs.