New Entrepreneurial Decision Model Based on Decision Theory Application, Dr. Natalia Dobryagina
Dr. Natalia Dobryagina
Russian Presidential Academy of National Economy and Public Administration
North-West Institute of Management, St. Petersburg
Purpose: The purpose of the paper is to develop an entrepreneurial decision model, which will provide a framework for narrowing the gap between entrepreneurship determinants and entrepreneurial decision.
Design/methodology/approach: The paper develops a new entrepreneurial decision model on the base of existing research and Decision Theory application. The model is then applied to empirical data.
Findings: The paper shows that limited effect of entrepreneurship policies is connected with a lack of attention to decision maker’s perspective on entrepreneurial choice. The model, developed in the paper, frames key behavioral aspects of entrepreneurial decision in order to control the factors, which might lead to decreased effect of entrepreneurship policies.
Research limitations/implications: The created model provides a framework for entrepreneurial policy development, but doesn’t specify the list of entrepreneurial decision criteria. Also, the empirical study might contain country-specific results and self-reporting biases.
Originality/value: The suggested model of entrepreneurial decision provides a framework for: measuring sufficient level of benefits, which determine the entrepreneurial decision, in order to avoid ineffective resources allocation; identifying importance of benefits for a particular entrepreneurial group in order to foresee different effect of a certain policy on various types of entrepreneurs; analyzing and avoiding biased perception of benefits, which might appear due to a lack of knowledge about existing policies and un objective perception of future gains by potential entrepreneurs.
Keywords: Multi-criteria Decision Analysis; Entrepreneurship; Decision Making.
Citation: Dobryagina, N. (2022): New Entrepreneurial Decision Model Based on Decision Theory Application. World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 18, No. 3, pp. 363–375.