Cognitive biases, risk perception, and venture formation

Simon, Mark; Houghton, Susan M.; Aquino, Karl

doi:10.1016/s0883-9026(98)00003-2

Cited by 914 publications

(806 citation statements)

References 55 publications

Supporting

Mentioning

697

Contrasting

Unclassified

Order By: Relevance

“…Nevertheless, the weight of evidence suggests a positive relationship between general human capital and firm survival: As a counter to this, scholars including Starr and Bygrave (1992), Rerup (2005) and Simon, Houghton, and Aquino (2000) highlight the potential of prior entrepreneurial experience to bring liabilities including conservative inflexible approaches, a fixation on the past and lower motivation. In particular, empirical evidence suggests that business failure is less likely for more experienced entrepreneurs entering a new spell of business ownership (Taylor 1999;Holms and Schmitz 1996;Quandrini 1999;Unger et al 2011;Rauch and Rijsdijk 2013):…”

Section: Human Capitalmentioning

confidence: 99%

Entrepreneurship and the determinants of firm survival within regions: human capital, growth motivation and locational conditions

Huggins

Prokop

Thompson

2017

Entrepreneurship & Regional Development

117

View full text Add to dashboard Cite

Despite a growing body of research on firm survival, little is known about the factors impacting upon survival rates at a micro-spatial level. This study, therefore, analyses firm survival across local environments in the context of a peripheral region; namely, the case of Wales in the UK. It examines how theories relating to human capital, growth motivation and locational conditions may explain survival within a region. Drawing on data of survival patterns for a cohort of firms, it is found that each of the three theories at least partly explain firm survival, with it being clear that human capital relating to the experience of entrepreneurs, as well as the growth motivation of their firms resulting from the strategic choices they make, impact upon rates of survival. It is also found that the local environment contributes to the likelihood of its survival. In particular, it is found that locational factors have a potential influence on the human capital allocated to enterprise, as well as how this capital is utilised via growth motivation. This suggests that not only do locational factors contribute to differing rates of entrepreneurship, but that such factors also impact on the durability of firms over time. Abstract Despite a growing body of research on firm survival, little is known about the factors impacting upon survival rates at a micro-spatial level. This study, therefore, analyses firm survival across local environments in the context of a peripheral region; namely, the case of Wales in the UK. It examines how theories relating to human capital, growth motivation and locational conditions may explain survival within a region. Drawing on data of survival patterns for a cohort of firms, it is found that each of the three theories at least partly explain firm survival, with it being clear that human capital relating to the experience of entrepreneurs, as well as the growth motivation of their firms resulting from the strategic choices they make, impact upon rates of survival. It is also found that the local environment contributes to the likelihood of its survival. In particular, it is found that locational factors have a potential influence on the human capital allocated to enterprise, as well as how this capital is utilised via growth motivation. This suggests that not only do locational factors contribute to differing rates of entrepreneurship, but that such factors also impact on the durability of firms over time.

show abstract

Section: Human Capitalmentioning

confidence: 99%

Entrepreneurship and the determinants of firm survival within regions: human capital, growth motivation and locational conditions

Huggins

Prokop

Thompson

2017

Entrepreneurship & Regional Development

117

View full text Add to dashboard Cite

show abstract

“…(0 = not risky … 10 = very risky) because the more risky an entrepreneurial career is perceived, the less likely individuals intend to found a venture (Simon et al 2000).…”

Section: Control Variablesmentioning

confidence: 99%

ADHD-like behavior and entrepreneurial intentions

et al. 2015

View full text Add to dashboard Cite

Little is known about the relation between entrepreneurship and the extent of psychiatric symptoms. Validated psychiatric symptom scores are seldom used for non-clinical reasons. One prevalent symptom that deserves our interest is Attention Deficit and Hyperactivity Disorder (ADHD). ADHD is a developmental disorder characterized by inattentiveness and hyperactivity that has been linked to occupational choice and performance. Building on the person-environment fit literature, we hypothesize that individuals who exhibit behavior associated with ADHD are more likely to have entrepreneurial intentions. Using a sample of 10,104 students enrolled in higher education, we can confirm our prediction that students with a higher level of ADHD-like behavior are more likely to have entrepreneurial intentions. Additionally, we show that risk taking propensity is a mediator that partly explains this positive effect. Our study points to the importance of behavioral tendencies associated with developmental disorders, when making entrepreneurship decisions. Our study contributes to the literature on the determinants of entrepreneurship, which so far has largely neglected the effects of psychiatric symptoms on entrepreneurship.Electronic supplementary material The online version of this article

show abstract

“…In becoming an entrepreneur, an individual risks his/her financial, social and psychic well-being (Liles, 1974). Several reasons explain why someone might be willing to take these risks (Segal et al, 2005); indeed, some entrepreneurs highlight the expected benefits of the risks (Weber et al, 2002); others are convinced they can control the risks (Boyd and Vozikis, 1994); and some do not perceive risk as being as grave as others view it (Busenitz, 1999;Simon et al, 2000;Weber et al, 2002); and some are more tolerant of risk in general (Segal et al, 2005). It has been difficult to find evidence to support the view that entrepreneurs have a greater propensity to tolerate risk than average people in a given population.…”

Section: Theory and Hypotheses Risk Perceptions Entrepreneurship Andmentioning

confidence: 99%

Risk perception matters: why women’s passion may not lead to a business start-up

Dalborg

Friedrichs

Wincent

2015

International Journal of Gender and Entrepreneurship

View full text Add to dashboard Cite

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.*Related content and download information correct at time of download. Purpose -This paper aims to explore whether nascent women entrepreneurs perceive more risks than men, and to determine how higher risk perceptions might limit start-up decisions by mediating the potential influence of passion and self-efficacy. Design/methodology/approach -This study surveyed 103 participants in Sweden -both women and men -who, in the period 2008 through 2011, intended to start a business. ANOVA tests and binominal logistic regression models were conducted to test hypothesized framework. Findings -The authors found that nascent women entrepreneurs perceive more risk than nascent male entrepreneurs, that risk perceptions influence start-up decisions and that risk preferences partial out the otherwise identified influence of passion on start-up decisions.Research limitations/implications -The authors reveal a consequence of gender socialization and how it impacts the start-up decisions of nascent women entrepreneurs. Support systems should consider developing activities that change the public's perception of who is an entrepreneur and seek ways to balance risk perceptions between men and women. Originality/value -The authors argue here that risk perceptions play a prominent role in start-up decisions. Specifically, they consider that nascent women entrepreneurs perceive more risks than men, and that their view of risk partials out any potential influence of their perceived passion and self-efficacy on their start-up decision.

show abstract

Cognitive biases, risk perception, and venture formation

Cited by 914 publications

References 55 publications

Entrepreneurship and the determinants of firm survival within regions: human capital, growth motivation and locational conditions

Entrepreneurship and the determinants of firm survival within regions: human capital, growth motivation and locational conditions

ADHD-like behavior and entrepreneurial intentions

Risk perception matters: why women’s passion may not lead to a business start-up

Contact Info

Product

Resources

About