Determinants of Entrepreneurial Risk among Young Emiratis

Abstract

This work aimed to investigate the determinants of entrepreneurial risk among Emirati youth enrolled in a university in the United Arab Emirates. This was a quantitative study, which used a survey of 324 university students with an average age of 20.7 years and a standard deviation of 3.1 years. The collected data were analyzed using two methods—Ordinal Probit Regression Estimation and Structural Equation Modeling—to identify the factors that may determine entrepreneurial risk and assess the research hypotheses among this group of Emirati youth. The results showed that Emirati youth are risk-averse when (a) they do not receive government support, (b) they have a perception of low self-efficacy, (c) they are afraid of failure, and d) they perceive considerable obstacles and barriers. In addition, it is concluded that it is necessary to stimulate creativity and an innovative mindset among students.