Why are optimistic entrepreneurs successful? An application of the regulatory focus theory

Aidis, Ruta; Mickiewicz, Tomasz and Sauka, Arnis Why are optimistic entrepreneurs successful? An application of the regulatory focus theory. Working Paper. William Davidson Institute at the University of Michigan.

Abstract

Does entrepreneurial optimism affect business performance? Using a unique data set based on repeated survey design, we investigate this relationship empirically. Our measures of ‘optimism’ and ‘realism’ are derived from comparing the turnover growth expectations of 133 owners-managers with the actual outcomes one year later. Our results indicate that entrepreneurial optimists perform significantly better in terms of profits than pessimists. Moreover, it is the optimist-realist combination that performs best. We interpret our results using regulatory focus theory.

Divisions: Aston Business School > Economics finance & entrepreneurship
Uncontrolled Keywords: entrepreneurship,Latvia,Regulatory Focus Theory,venture growth,optimism

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