Does Entrepreneurial Risk-Taking Affect the Business Performance of Micro-Enterprises? Evidence from Skikda in Algeria

Ayoub Messikh


According to several previous studies, entrepreneurial risk-taking is an
important aspect that can lead to prospective business opportunities, hence
improving entrepreneurial outcomes such as enterprise performance. The
main purpose of this paper is to examine the extent and degree of impact of
entrepreneurial risk-taking (ERT) as one of the dimensions of entrepreneurial
mindset on the performance of micro enterprises in Skikda, Algeria. Based on
a self-administered survey questionnaire, data were collected from a random
sample of 142 micro-enterprises in Skikda. The study adopted descriptive,
correlation, and regression analyses to estimate the impact of entrepreneurial
risk-taking. collected data were analyzed using the Statistical Package for Social
Sciences (SPSS 22) programme. The findings demonstrate that entrepreneurial
risk-taking significantly affects the performance of micro enterprises in Skikda.
Of the total variance of the performance of micro enterprise’s, 9.2% can be
explained by the variability of entrepreneurial risk-taking. A small percentage
is expected and can partly be explained by the presence of other factors that
affect the performance of these enterprises as well as the negative effects
of the COVID-19 pandemic on the process of economic activity and available
business opportunities worldwide, especially these very small enterprises.
However, the presence of this positive impact calls for a focus on raising the
risk-taking spirit of existing and potential Algerian entrepreneurs, by holding
conferences, forums and entrepreneurial programmes that enhance and
support this characteristic of the entrepreneurial mindset.


Risk taking, Entrepreneurship, Business performance, Micro enterprises, Skikda, Algeria

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