Entrepreneurial Investor: Decision Making and Profitability

Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 13 February 2019

Entrepreneurial Investor: Decision Making and Profitability

Kinza Yousfani, Nida Shah, Hameedullah Kazi

Isra University, Pakistan

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10.31014/aior.1992.02.01.64

Abstract

An entrepreneur influences the parameters of the strategic decision process by the approach he is going to adopt (rational, emotional or intuitive). The decision process, on the other hand, affects the entrepreneurial profitability, knowledge, and experience. Successful decision making requires an accurate understanding of the environment in which the decision will be played out. The logic behind entrepreneurial decision making is a complex issue, not clearly explained by the traditional economic theory, Therefore, finding this relationship is important for determining the factors which influence entrepreneurial investors’ decisions and consequently affects their profitability. For this purpose, data were collected from a sample of 150 entrepreneurial investors of Hyderabad and Karachi through a structured questionnaire. The study concludes that no significant relationship exists between age, qualification and decision making. However, a significant relationship is found between income and decision making. In addition, combination entrepreneurial investors earn more income than the irrational and rational entrepreneurial investor. This study will be of profound interest for individual and institution entrepreneurial investor market regulatory and academician.

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