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

Culture of entrepreneurs is also a sort of capital, which has a direct effect on development of enterprises in the process of economic operation of enterprises. Construction of cultural capital among entrepreneurs helps to enhance the overall competitive strength of Chinese enterprises in international society and helps to push forward development of the economic society. Due to historical reas...

the issue of entrepreneurial learning and entrepreneurs’ different learning methods are addressed to attract and empower young interested people to create and manage business activities. although learning has a crucial role in the process of entrepreneurship, entrepreneurs and researchers lack a comprehensive pattern for explaining learning in terms of sources, methods, as well as entrepreneurs...

The presence of externality, indivisibility, and uncertainty destroys the market's ability to coordinate production. Entrepreneurs rise to organize production by assuming a part of the allocative role traditionally reserved exclusively to the market. Assume that there are three classes of entrepreneurs: profit-oriented, nonprofit oriented and public entrepreneurs. These entrepreneurs cooperate ...

How do entrepreneurs decide to begin a full scale operation (i.e., exploitation of a new opportunity) in the entrepreneurial process? The question is investigated in a conjoint experiment with 55 entrepreneurs of high tech new ventures. The results suggest that entrepreneurs’ exploitation decision is positively affected by potential profitability (a low threat of imitation) and negatively by th...

This paper seeks to measure the extent to which entrepreneurs adjust their beliefs in the light of new information, rather than relying on past experience to guide their decision making. We build a model in which entrepreneurs continually receive valuable but noisy market signals about the true but unobserved productivity of their effort, and use this information to update their expectations of...

The Advantage of Experienced Start-Up Founders in Venture Capital Acquisition: Evidence from Serial Entrepreneurs Existing literature suggests that entrepreneurs with prior firm-founding experience have more skills and social connections than novice entrepreneurs. Such skills and social connections could give experienced founders some advantage in the process of raising venture capital. This pa...

This paper challenges the traditional view of the corporate tax as taxing corporate capital rather than the act of incorporating. Our model has no capital. Entrepreneurs pay to go public to diversify their risk. In discouraging incorporation, the tax keeps more entrepreneurs private and exposed to more risk. The tax falls primarily on high-skilled entrepreneurs and to a lesser extent on labor, ...

This paper contributes to our understanding of minority entrepreneurs in the US by showing that ethnicity alone should not be used to describe or categorize small business owners. We examine a sample of 508 entrepreneurs from three minority groups (African, Mexican, and Korean Americans) and a white group using cluster analysis to explore a categorization pattern that best describes the differe...

In this study, we seek to understand the key differences between the entrepreneurial experience for Mexican immigrant and US-born Mexican entrepreneurs. We focus on differences in motivation for start-up, reliance on ethnic enclaves and business management practices. Using data from the 2005 National Minority Business Owner Survey, our sample consisted of 156 Mexican American entrepreneurs (55 ...