Entrepreneurs may be willing to take on above-average risk for financial gain, but they tend to be more conservative with saving and borrowing, according to a new study from the Ewing Marion Kauffman Foundation.

The study found that business owners were about twice as likely to say they would be willing to take “substantial financial risks expecting to earn substantial returns.”

Yet 45 percent of business owners said it was important to save for retirement, compared with 32 percent of non-business owners. Company owners were much more likely to report saving for 5 or more years into the future–a finding consistent with earlier research.

Just over 12 percent of households own a business, and they tend to fall into higher income brackets. Their median income is $87,000 and their median net worth is $497,000, compared with $42,000 and $94,000 for non-business owners. Each additional year of business ownership adds between $2,700 and $3,000 to net worth, the study found.

When searching for the best investment or borrowing terms, 91 percent of business owners shop at least a moderate amount, compared with 82 percent of those who don't own businesses.

Owners also were slightly more conservative with respect to borrowing for living expenses–47 percent say it is OK, compared with 52 percent of non-business owners.

One surprising result: Business owners (69 percent) tend to have almost as good an idea of future income as non-owners (73 percent), possibly because they adjust their work to meet a target income.

The study is based on 1989 to 2007 data from the Federal Reserve Board Survey of Consumer Finances.

Special Reports /

Kauffman study: Entrepreneurs Blend Aggressive, Conservative Traits

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