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

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
Aston Business School
Additional Information: © The Authors
Uncontrolled Keywords: entrepreneurship,Latvia,Regulatory Focus Theory,venture growth,optimism
PURE Output Type: Working paper
Published Date: 2008-02
Authors: Aidis, Ruta
Mickiewicz, Tomasz ( 0000-0001-5261-5662)
Sauka, Arnis

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