“Yes, we know!” (Over)confidence in general knowledge among Austrian entrepreneurs

Viktorija Ilieva, Thomas Brudermann and Ljubomir Drakulevski

PLOS ONE, 2018, vol. 13, issue 5, 1-15

Abstract: Overconfidence has been reported to be a common bias among entrepreneurs and might be one cause of the high failure rates observed for new ventures. In this study, we investigate the overconfidence bias in a sample of 92 Austrian entrepreneurs, who responded to a general-knowledge questionnaire. Their levels of overconfidence were assessed by their responses to hard, medium and easy knowledge questions, and the relations of individual, organizational and environmental factors to the bias score were analyzed. The results confirmed that entrepreneurs are indeed prone to expressing overprecision, a type of overconfidence, but not when answering questions of all levels of difficulty. Being a single founder instead of a co-founder was identified as a significant predictor of overconfidence. Confidence, on the other hand, was associated with age and prior entrepreneurial experience, while accuracy was determined solely by age. The results of this study only partly agree with those of previous studies conducted in different national and cultural settings.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0197085 (text/html)
https://journals.plos.org/plosone/article/file?id= ... 97085&type=printable (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0197085

DOI: 10.1371/journal.pone.0197085

Access Statistics for this article

More articles in PLOS ONE from Public Library of Science
Bibliographic data for series maintained by plosone ().