The changing form of overconfidence and its effect on growth expectations at the early stages of startups
Bibliographic Data
| ID | 14869716 |
|---|---|
| Authors | László Szerb (0000-0002-6964-7422, University of Pecs, corresponding author), Zsófia Vörös (0000-0003-4756-8050, University of Pecs) |
| Year | 2021 |
| Volume | 57 |
| Issue | 1 |
| Pages | 151-165 |
| Publication date | 2021-06-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Small Business Economics (JOURNAL) |
| Journal identifiers | ISSN: 0921-898X • E-ISSN: 1573-0913 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s11187-019-00297-9 |
| OpenAlex | W2990778411 |
| Language | EN |
| Citations received | 3 |
| References cited | 72 |
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 works | 3 |
|---|---|
| Citations per year | 0,75 |
| Citation span | 2022 - 2025 (4) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 3 |