Strengths Become Weaknesses: Cognitive Biases in Founder Decision-Making

Posted: 12 Mar 2012

See all articles by Noam Wasserman

Noam Wasserman

University of Southern California - Lloyd Greif Center for Entrepreneurial Studies

Kyle Anderson

affiliation not provided to SSRN

Date Written: June 1, 2011

Abstract

This note combines vignettes and scholarly research to outline the cognitive biases and decision-making strategies that influence key decisions in the founding process. It is argued that the same biases which provide early benefits can later prove to be a weakness for the startup, and that founders must learn to identify their biases and work to balance them out with sound advice and dispassionate analysis.

Learning Objective: Helps students identify recurring patterns in entrepreneurial decision making and gives them a framework to evaluate the psychological influences on founder decisions.

Suggested Citation

Wasserman, Noam and Anderson, Kyle, Strengths Become Weaknesses: Cognitive Biases in Founder Decision-Making (June 1, 2011). Harvard Business School Entrepreneurial Management Case No. 811-068. Available at SSRN: https://ssrn.com/abstract=2020484

Noam Wasserman (Contact Author)

University of Southern California - Lloyd Greif Center for Entrepreneurial Studies ( email )

United States

Kyle Anderson

affiliation not provided to SSRN ( email )

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