Strengths Become Weaknesses: Cognitive Biases in Founder Decision-Making
Posted: 12 Mar 2012
Date Written: June 1, 2011
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.
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