This paper explains why seemingly irrational overconfident behavior can persist. Information aggregation is poor in groups in which most individuals herd. By ignoring the herd, the actions of overconfident individuals (“entrepreneurs”) convey their private information. However, entrepreneurs make mistakes and thus die more frequently. The socially optimal proportion of entrepreneurs trades off ...

Entrepreneurship is a central path to job creation, economic growth, and prosperity. In the earliest stages of start-up business creation, the matching of entrepreneurial ventures to investors is critically important. The entrepreneur's business proposition and previous experience are regarded as the main criteria for investment decisions. Our research, however, documents other critical criteri...

This paper explains why seemingly irrational overconfident behavior can persist. Information aggregation is poor in groups in which most individuals herd. By ignoring the herd, the actions of overconfident individuals (“entrepreneurs”) convey their private information. However, entrepreneurs make mistakes and thus die more frequently. The socially optimal proportion of entrepreneurs trades off ...

Common tests for credit constraints are highly sensitive to econometric assumptions. Tests of the relationship between wealth and entry into entrepreneurship require strong assumptions about the distribution of unobserved ability, and the results change when the definition of entrepreneurship changes. Tests of the relationship between entrepreneurs’ productivity and wealth can produce spurious ...

There is an implicit blindly bubble situation behind the interest and enthusiasm towards the Internet entrepreneurship, so it is necessary for entrepreneurs to make scientific and reasonable assessment about the possible risks before the related decisions made. This research embarks from the perspective of entrepreneurs and focus on the risk factors of entrepreneurship in Internet industry base...

Building and using social networks is an important factor in individuals’ personal as well as professional success. In the present work, we examine how individuals’ regulatory focus relates to their networking behavior. Findings from a sample of 300 entrepreneurs across 25 networking groups showed that a general focus on motivations for growth and advancement (promotion) predicted an increase i...

We explore how integrating into the world economy affects the incomes of manufacturers in less developed countries (LDCs). We show that cutting back trade barriers has asymmetric effects on the incomes of the two typical groups of entrepreneurs. Whereas access to foreign markets benefits those entrepreneurs who are able to run large-scale factories, credit-rationed entrepreneurs running a micro...

the aim of this study was to investigate the effect of competencies and environmental factors on the success of rural entrepreneurs in kermanshah township. the statistical population consisted of 110 rural entrepreneurs that with using kerjci and morgan table, a sample size of 86 people were selected by random sampling technique. to collect the data, questionnaire was used. the analysis of find...

Although researchers in such diverse fields as economics and organizational sociology have explored firm exit, little research has explored entrepreneurial exit–the decision by the majority-owner founders of privately-held firms to harvest their profits and remove themselves from the primary ownership and decision-making structure of the firm. Yet, all entrepreneurs in one way or another will l...

Available online xxxx Field Editor: Garry Bruton ucts and services, howcan institutions remain unchanged? This paper explores this theoretical conundrum empirically through the examination of the actions of entrepreneur Lowell Wakefield. If entrepreneurs are constrained and shaped by existing institutions, how? If entrepreneurs prodContrary to previous work that suggests that it is institutiona...