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

Ruta Aidis; Tomasz Mickiewicz; Arnis Sauka

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

Ruta Aidis
, Tomasz Mickiewicz
, Arnis Sauka

Research output: Preprint or Working paper › Working paper

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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 language	English
Place of Publication	Michigan (US)
Publisher	William Davidson Institute at the University of Michigan
Number of pages	32
Publication status	Published - Feb 2008

Publication series

Name	William Davidson Institute Working Paper
No.	914

Bibliographical note

Keywords

entrepreneurship
Latvia
Regulatory Focus Theory
venture growth
optimism

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WHY ARE OPTIMISTIC ENTREPRENEURS SUCCESSFUL?
© The Authors
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AB - 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.

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KW - Latvia

KW - Regulatory Focus Theory

KW - venture growth

KW - optimism

UR - https://deepblue.lib.umich.edu/handle/2027.42/64399

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ER -

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

Abstract

Publication series

Bibliographical note

Keywords

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