Do entrepreneurs consider the risk of their business equity when making investment portfolio allocations? Many people compartmentalize different risks and consider them separately, called mental accounting. Alternatively, the risk substitution hypothesis suggests that entrepreneurs would offset...

This paper develops a theoretical framework to explain a limited effect of business development programs (BDPs) on entrepreneurs' profit. We argue BDPs limited effect is due to mismatch between a BDPs' narrow focus on business-promoting strategies and a wider context in which microentrepreneurs...