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

Ruta Aidis, Tomasz Mickiewicz, Arnis Sauka

Research output: Working paper

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.
Original languageEnglish
Place of PublicationMichigan (US)
PublisherWilliam Davidson Institute at the University of Michigan
Number of pages32
Publication statusPublished - Feb 2008

Publication series

NameWilliam Davidson Institute Working Paper
No.914

Bibliographical note

© The Authors

Keywords

  • entrepreneurship
  • Latvia
  • Regulatory Focus Theory
  • venture growth
  • optimism

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    Aidis, R., Mickiewicz, T., & Sauka, A. (2008). Why are optimistic entrepreneurs successful? An application of the regulatory focus theory. (William Davidson Institute Working Paper; No. 914). William Davidson Institute at the University of Michigan.