Research Discussion Papers, Bank of Finland
No 20/2012:
Entrepreneurial optimism and survival
Ari Hyytinen ()
, Jukka Lahtonen and Mika Pajarinen
Abstract: This paper uses entrepreneurs’survival expectations around
the time of market entry and subsequent venture exits to study
entrepreneurial optimism. Using data on a large number of nascent
entrepreneurs in the US and start-ups in Finland, we find that new
entrepreneurs survival beliefs are on average optimistic but heterogeneous:
Some are excessively optimistic, whereas a small subset holds unbiased
beliefs. Entrepreneurial optimism is increasing in the relative
(interpersonal) optimism and decreasing in entrepreneurs level of education
and industry experience in both countries. At least in Finland, those
holding optimistic views are more likely to transit into
entrepreneurship.
Keywords: entrepreneurship; survival; optimism; overestimation; (follow links to similar papers)
JEL-Codes: D21; L20; (follow links to similar papers)
49 pages, April 25, 2012
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