Beyond hubris: How highly confident entrepreneurs rebound to venture again


This article outlines why highly confident entrepreneurs of focal ventures are better positioned to start and succeed with another venture; and therefore why overconfidence in one’s capabilities functionally persists and pervades amongst entrepreneurs. By combining cognitive perspectives on confidence in decision making with Fredrickson’s [Fredrickson, B.L. 1998. What good are positive emotions?. Review of General Psychology, 2, 300–319.; Fredrickson, B.L. 2001. The role of positive emotions in positive psychology: the broaden-and-build theory of positive emotions. American Psychologist, 56, 218–226.; Fredrickson, B.L. 2003. The value of positive emotions. American Scientist, 91: 330–335] ‘broaden-and-build’ theory of positive emotions, this paper elaborates the manner in which such entrepreneurs can develop emotional, cognitive, social and financial resilience that can be marshaled and mobilized for a subsequent venture.

Journal or Publication:
Journal of Business Venturing
Authors:
Saras Sarasvathy
Mathew L.A. Hayward
Bill Forster
Barbara L. Fredrickson
Tags:
Status:
publish
Year Published
2010
Relevant Principles:
Pilot-in-the-Plane (Control vs. Predict)
Download Attachment:
 PDF Download