Beyond Hubris: How Highly Confident Entrepreneurs Rebound to Venture Again

Posted: 13 Aug 2009 Last revised: 20 Jan 2010

See all articles by Mathew Hayward

Mathew Hayward

University of Colorado at Boulder - Department of Management

William Forster

Lehigh University

Saras D. Sarasvathy

University of Virginia - Darden School of Business

Bruce A. Fredrickson

affiliation not provided to SSRN

Date Written: July 2, 2009

Abstract

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.

Suggested Citation

Hayward, Mathew and Forster, William R. and Sarasvathy, Saras D. and Fredrickson, Bruce A., Beyond Hubris: How Highly Confident Entrepreneurs Rebound to Venture Again (July 2, 2009). Batten Institute Research Paper No. 2009 H 1, Journal of Business Venturing, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1428968

Mathew Hayward (Contact Author)

University of Colorado at Boulder - Department of Management ( email )

United States

William R. Forster

Lehigh University ( email )

Bethlehem, PA 18015
United States

Saras D. Sarasvathy

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.effectuation.org

Bruce A. Fredrickson

affiliation not provided to SSRN ( email )

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