RISK-TAKING AND DECISION-MAKING RELATIONSHIP OF THE IMPLEMENTATION OF INTENTIONS

Author:

Cekuls Andrejs1ORCID,Cekule Laila1

Affiliation:

1. University of Latvia

Abstract

Taking a risk and making a decision are two important factors in starting a business. Studies show that young people are at high risk. There are a number of factors that can contribute to this phenomenon, including both biological and environmental effects, but decisions may be influenced by prejudices about the immediate benefits over the longterm benefits. Achieving long-term goals is always associated with uncertainty, as it cannot be assumed that all the circumstances that may arise in the future will be known. The way of making decisions in conditions of uncertainty will rather refer to the learned, usual reaction model that an individual tends to show in decision-making situations. The aim of this study is to assess how business students perceive and interpret the potentially excessive risk of starting a new business and making decisions in an environment of uncertainty. The objectives of the study were to analyze the relationship between risk-taking and decision-making at different probabilities and to assess whether business-oriented individuals differ from others in their willingness to take risks and accept uncertainty. The study was conducted using a survey method to collect data and test hypotheses using a structured questionnaire on risk-taking factors and individual decision styles. The elements of each design were developed based on a literature review and adapted from decision-making documents under conditions of uncertainty and uncertainty. The study showed that for business students, there is a significant relationship between the willingness to take risks and the desire to develop entrepreneurship. The results show that risk-taking increases innovative decision-making, which can be an important factor in product differentiation. On the other hand, unsuccessful risks, if the student tends to take risks, can speed up the decision to change the future business strategy and promote business growth.

Publisher

SGEM WORLD SCIENCE

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