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The changing form of overconfidence and its effect on growth expectations at the early stages of startups

Bibliographic Data

ID14869716
AuthorsLászló Szerb (0000-0002-6964-7422, University of Pecs, corresponding author), Zsófia Vörös (0000-0003-4756-8050, University of Pecs)
Year2021
Volume57
Issue1
Pages151-165
Publication date2021-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSmall Business Economics (JOURNAL)
Journal identifiersISSN: 0921-898X • E-ISSN: 1573-0913
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s11187-019-00297-9
OpenAlexW2990778411
LanguageEN
Citations received3
References cited72

In this article, we attempt to explain the failure of many studies to show a link between entrepreneurs’ beliefs in their entrepreneurial skills and the actual or expected growth of their venture. By using Frese and Gielnik’s action-characteristics model of entrepreneurship as an analytical framework and analyzing Global Entrepreneurship Monitor Adult Population Survey data, we show that entrepreneurs’ perceived entrepreneurial skills are consistently inflated over the different phases of the startup, albeit in different ways. Depending on the typical form of overconfidence, the link between skill beliefs and growth expectations may be mediated by expectations about competitive advantages. Moreover, the huge drop in growth expectations is not associated with a drop in perceived skills; instead other entrepreneurial expectations also become more realistic and their effect strengthens with experience

Business · Demographic economics · Drop out · Economics · Entrepreneurship · New Ventures · Overconfidence effect · Entrepreneurship Studies and Influences · Innovation and Socioeconomic Development · Private Equity and Venture Capital · Psychology · Social Psychology · Marketing

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Unique citing works3
Citations per year0,75
Citation span2022 - 2025 (4)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 3

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