RISK AND LOSS AVERSE: HOW ENTREPRENEURIAL INTENTION OCCUR

Entrepreneur is professions which always faces uncertainty and risks when make decision. This study was aimed to determine how risk averse and loss averse influence entrepreneurial intention based on Prospect Theory, which an influential decision making perspective. The method was experimental method which was selected because it can provide specific illustration on individual behavior. Risk averse and loss averse were determined by two games. In each of the participants faced nine decisions and a number of questions to identify entrepreneurial intention. The research result showed that risk averse and loss averse influence entrepreneurial intention. This study implied that as future entrepreneurs, students should try business opportunities which have low risks they can handle. Selection of opportunity with low alternative should be done because risk behavior can be controlled by more knowledge and experience