The Mediating Role of Risk-Taking in the Relationship Between Entrepreneurial Traits and Behavior: A Study of Student Entrepreneurs

Abstract

This study examines the mediating role of risk-taking behaviour in the relationship between key entrepreneurial traits—innovativeness, proactiveness, and self-management—and entrepreneurial behaviour among university students in Gujranwala, Pakistan. Drawing on Schumpeter's (1934) theory of innovation, Lumpkin and Dess's (2001) entrepreneurial orientation framework, and Bandura's (1991) social cognitive theory, the research employs a quantitative, cross-sectional design with data from 450 student entrepreneurs. Structural equation modelling (SEM) and mediation analysis reveal that innovativeness (β = .33) and proactiveness (β = .24) have substantial direct effects on entrepreneurial behaviour. At the same time, self-management exhibits a positive but comparatively weaker direct effect (β = .18). Risk-taking emerges as a critical mediator, accounting for 25.5% and 29.8% of the total effects of innovativeness and proactiveness, respectively, and an adverse mediation effect (-.081) for self-management, highlighting its dual role in entrepreneurial decision-making. The findings underscore risk-taking as a translational mechanism that bridges entrepreneurial traits and action, supporting McMullen and Shepherd's (2006) theory of entrepreneurial behaviour under uncertainty. Practical implications suggest the development of tailored entrepreneurship education programs that foster calculated risk-taking, opportunity-scanning exercises, and risk-calibration strategies for self-regulated individuals. Limitations include sample specificity and a cross-sectional design, prompting future research to explore cross-cultural replications and the neurocognitive mechanisms underlying risk perception.