Optimism: Too Much of a Good Thing for Entrepreneurs?
A recent study examined the relationship between entrepreneurs’ optimism and the performance of their new ventures (Hmieleski, K.M. & Baron, R.A., 2009, Entrepreneurs’ optimism and new venture performance: A social cognitive perspective. Academy of Management Journal, 473-488). This study of 207 entrepreneurs with an average firm age of 5.7 years found a negative relationship between optimism of the founders and performance of the new venture. Furthermore, “the negative relationship between entrepreneurs’ optimism and the performance of their new ventures is strongest when entrepreneurs are high in previous business founding experience and lead their firms in dynamic environments” (p. 480).
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Posted On: July 15, 2009