There are various reasons why some entrepreneurs may be more overoptimistic at the start of their ventures than others. We distinguish between four broad categories of determining factors and three areas of overoptimism (income, psychological burden and leisure time) and empirically investigate those for a sample of Dutch start-ups. The first category is information. We find that more specifica...

This paper seeks to measure the extent to which entrepreneurs adjust their beliefs in the light of new information, rather than relying on past experience to guide their decision making. We build a model in which entrepreneurs continually receive valuable but noisy market signals about the true but unobserved productivity of their effort, and use this information to update their expectations of...

Little research has been conducted regarding serial entrepreneurship compared to more broadly, despite that suggests as many 50% of all entrepreneurs are entrepreneurs. Entrepreneurship shows most new ventures fail, yet continually exit previous and start ones. Our study explores 118 scholarly articles indexed in Web Science Scopus databases on through multiple correspondence analysis. Through ...

This paper attempts to reconcile the risk-bearing characterization of entrepreneurs with the stylized fact that entrepreneurs exhibit conventional risk aversion profiles. We propose that the disparity arises from confounding two distinct dimensions of uncertainty: demand uncertainty and ability uncertainty. We further propose that entrepreneurs will be risk averse with respect to demand uncerta...

ACADEMIC ABSTRACT The current research incorporates individual as well as environmental effects in examining the antecedents of entrepreneurial alertness. Entrepreneurial alertness rests with the asymmetric knowledge that entrepreneurs develop and that others do not. People have different stocks of information because information is generated through people's idiosyncratic life experiences. The...

Innovation in the start-up market is a key determinant of economic growth. But what determines an inventor’s decision to begin a new venture and his or her subsequent innovation? This paper analyzes the role of the financial market of acquisitions. After documenting its increasing importance as the dominant exit path for entrepreneurs, I test a novel catering theory of innovation: Does the mark...

having a full understanding of the world’s social-economic situation is the success key for industries automotive manufacturing industry is an extremely competitive one usually there is no clear guideline among automotive companies about technological causes behind their success and failure. this research provides an investigation about the world’s economic situation and the environmental situa...

The rate of technological growth is likely to be affected by the way in which the stock of human resources is allocated. This social sorting of individuals over occupations is (partly) a market outcome, affected by the relative return to intellectual ability such as intelligence and other individual merits. To analyze how the social sorting is affected by growth, we present a stylized endogenou...

Entrepreneurs in high technology industries often have prior experience at incumbent firms, but we know little about how knowledge obtained at the prior employer impacts entrepreneurial performance. Drawing on previous work from management, economics, and organizational sociology, I assess the impact of prior industry experience on entrepreneurial performance and innovation in medical device st...