A Comparative Analysis of Risk Capacity and Risk Willingness Among Working Rural and Urban Women of Delhi NCR and Gujarat

International Journal of Economics and Management Studies

© 2023 by SSRG - IJEMS Journal

Volume 10 Issue 1

Year of Publication : 2023

Authors : Aashvi Maithani

10.14445/23939125/IJEMS-V10I1P104

How to Cite?

Aashvi Maithani, "A Comparative Analysis of Risk Capacity and Risk Willingness Among Working Rural and Urban Women of Delhi NCR and Gujarat," SSRG International Journal of Economics and Management Studies, vol. 10,  no. 1, pp. 28-33, 2023. Crossref, https://doi.org/10.14445/23939125/IJEMS-V10I1P104

Abstract:

Risk-taking is an important skill in entrepreneurs. However, there is a gender parity in the risk propensity between men and women. Although this parity doesn't seem to exist in women with high education in the west, it still exists in developing countries. The present study aims to find the risk capacity and risk willingness in women from different socioeconomic groups in Delhi NCR and Gujarat, India, a developing country. There were 35 respondents in total, 20 of them being women from the higher socio-economic group in the Delhi NCR region, whereas 15 were from a lower socio-economic group in Gujarat. Graphical representation and descriptive statistics were used to analyse the results. Furthermore, Mann Whitney U- test was carried out to test the statistical significance of the results. It was found that regardless of socio-economic status, women have an overall low-risk tolerance. Lack of financial literacy is the reason for being financially risk averse, so awareness/educational programs about finance can be helpful to make women more financially literate.

Keywords:

Risk capacity, Risk tolerance, Risk willingness, Socio-economic status, Women entrepreneurs.

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