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Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport
ISSN (Print): 2376-1326 ISSN (Online): 2376-1334 Website: https://www.sciepub.com/journal/jbe Editor-in-chief: Pr. Abdelfatteh Bouri
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Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2015, 3(1), 12-20
DOI: 10.12691/jbe-3-1-2
Open AccessArticle

The Importance of Behavioral Factors: How Do Overconfidence Affect Entrepreneurial Opportunity Evaluation?

SALIMA TAKTAK1, and MOHAMED TRIKI1

1Sfax University, Tunisia Unity of research GOVERNANCE

Pub. Date: January 30, 2015
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Cite this paper:
SALIMA TAKTAK and MOHAMED TRIKI. The Importance of Behavioral Factors: How Do Overconfidence Affect Entrepreneurial Opportunity Evaluation?. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2015; 3(1):12-20. doi: 10.12691/jbe-3-1-2

Abstract

Even though the entrepreneurship literature places much emphasis on opportunity recognition, little is known about how entrepreneurs actually evaluate opportunities. This study uses a cognitive approach to examine opportunity evaluation, as the perception of opportunity is essentially a cognitive phenomenon. We present a model that consists of four independent variables (overconfidence, risk perception, creativity, Relational networks and environmental factors, experience, education and opportunity identification), two control variables (demographics and age), and the dependent variable (opportunity evaluation). We find that overconfidence and risk perception are related to how entrepreneurs evaluate opportunities. Our results also indicate that entrepreneurial individual factors affect opportunity evaluation.

Keywords:
opportunity evaluation overconfidence risk aversion BayesiaLab

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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