Skip to main content

Posts

Showing posts from September 18, 2014

Entrepreneurs Are Not Overconfident Gamblers

One facet of the mythology about today's entrepreneurs is that they are major risk takers.  But are they?  This study goes against this stereotype, pointing out that many entrepreneurs take very reasonable risks after considering the costs to their lives.

Over the years I've read studies that point out that many true entrepreneurs are cautious about their decisions to go into business, often working full and part time jobs for the first year or two of their enterprise.

Here's the report on the study:


Entrepreneurs Are Not Overconfident Gamblers Leaving one's job to become an entrepreneur is inarguably risky. But it may not be the fear of risk that makes entrepreneurs more determined to succeed. A new study finds entrepreneurs are also concerned about what they might lose in the transition from steady employment to startup.

In "Entrepreneurship and Loss-Aversion in a Winner-Take-All Society," Professor John Morgan at UC Berkeley's Haas School of Business and …