Abstract
Innovation is inherently associated with risk and uncertainty, and the engagement of entrepreneurs with these is central to the innovation process. Entrepreneurs are not passive actors but, through learning, they contribute to the dynamic capabilities of the firm across the innovation process. Drawing on 57 interviews with entrepreneurs in tourism SMEs in Spain and the UK, the paper identifies how risk and uncertainty are understood to change throughout the innovation process in the key areas of technology, finance, markets and organizations. It also examines how tourism entrepreneurs respond to risk and uncertainty through a range of strategies, especially the harvesting of knowledge and networking. However, engaging with uncertainty remains elusive and relies as much on intuition as on reasoning.