Abstract/Summary

Risk is a pivotal concept in entrepreneurship research, as entrepreneurs constantly face uncertainty, ambiguity, setbacks, and stressful situations. Attitudes toward risk vary contingent upon individual risk preferences and cultural influences. Building resilience is critical for entrepreneurs to overcome obstacles, deal with risk, and grow their ventures. By juxtaposing effectuation theory and resilience literature, we compare the perceptions of risk held by Chinese returnees and local entrepreneurs and their coping strategies in building resilience. Our research reveals two types of coping approaches, namely effectual coping and causal coping. This study contributes to the comparative international entrepreneurship literature by contextualizing the notion of risk held by entrepreneurs influenced by Eastern and Western cultures. Our study further contributes to the nascent literature on resilience in organizations by specifying the entrepreneurial occupational context and exploring the influence of cultures on resilience, and by identifying distinctive resilience‐building coping strategies based upon cultural influences and interpretations of risk. Furthermore, we suggest that resilience can constitute one micro‐foundation of effectuation theory in the context of entrepreneurship dealing with risk.