Impact of tolerance for uncertainty upon opportunity and necessity entrepreneurship

Abstract

Entrepreneurship is viewed as an important driver of economic development. Scholars have differentiated two dimensions of entrepreneurship: (1) opportunistic entrepreneurship driven primarily by the recognition of opportunity arising from an innovative idea and, (2) necessity entrepreneurship driven primarily by the belief that one's own business offers the likelihood of the highest utility. Both opportunistic and necessity entrepreneurship contribute to economic development. However, cultural norms of comfort with uncertainty may impact these two dimensions of entrepreneurship differentially. Therefore, in order to maximize economic development through entrepreneurial activities, differential national policy and managerial approaches may be advised across diverse nation states.