Beyond Hubris: How Highly Confident Entrepreneurs Rebound to Venture Again
Posted: 13 Aug 2009 Last revised: 20 Jan 2010
Date Written: July 2, 2009
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.
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