The wealthier the entrepreneur, the bigger the risk taker they are, new research has revealed.
According to a new report from Barclays Wealth, 60% of global entrepreneurs with assets of $1m plus said a high appetite for risk had been a big influence in generating their wealth. This is compared to only 36% of those with less than $1m worth of assets.
However, the research found that risk taking is more common in the ‘wealth creation’ stage, and entrepreneurs become more cautious with personal assets once they have made their money.
“This report reinforces the importance of the link between risk and wealth generation,” said Kevin Lecocq, chief investment officer at Barclays Wealth.
“What is interesting is the anomaly between an individual’s willingness to take risks when creating wealth and their reduced appetite for risk when it comes to investing that money.”
The country with the biggest appetite for risk is South Africa, according to the report. Entrepreneurs in UK and US are the least
likely to view a high-risk attitude as being an important factor in gaining their wealth.
According to the report this is because countries like Britain have more established market cultures and alternative opportunities, such as employment or inheritance, to acquire wealth.
© Crimson Business Ltd. 2007