Entrepreneurs perceived risk and risk taking behavior in the small-sized creative businesses of tourism sector during COVID-19 pandemic

Iin Agustina, Mohd Na’eim Bin Ajis, Hafid Aditya Pradesa

Abstract


The small-sized creative business in tourism sectors have been suffering risks of bankruptcy since the outbreak of coronavirus disease (COVID-19). Drawing on the basis theory of reasoned action, this study aims to investigate when entrepreneur risk perceptions affect their risk taking behavior. This study only focuses on the determinants of risk-taking, with regards perspective from entrepreneurial lens in perceiving business, product, and profit risk during COVID-19 pandemic. A quantitative approach using a structured questionnaire survey was utilized to attain the study objective. The dataset consist of 177 valid responses by the owner of small-sized creative business of Indonesia’s tourism sector (mainly in handicraft and fashion categories). Correlation analysis and partial least square (PLS) modeling were employed to examine the causal relationship between construct. Our empirical findings revealed that while entrepreneur’s perceived risk on business and product aspects was the most significant aspects that could affect their risk taking behavior, entrepreneur’s perceived risk on profit aspects have an insignificant influence on their risk taking behavior. It implies that the higher the level of business and product insecurity perceptions (as long as it can generate profitability and ensure business sustainability), the higher the level of risk-taking of entrepreneurs.


Keywords


COVID-19; Tourism; Perceived Risk; Risk Taking; Entrepreneurship; SME



DOI: http://dx.doi.org/10.31106/jema.v18i2.12563

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JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen is licensed under a Creative Commons Attribution 4.0 International License