Businesspeople who are too sure of their abilities are less savvy entrepreneurs (5/16/2008)
Apprentice-style ‘overconfidence’ is cause of too many business start-ups and why many ventures fail in first few years
Apprentice-style entrepreneurs who have an inflated sense of their own abilities may jump into new business ventures with insufficient regard for the competition and the size of the market, new research has found.
Psychologists say that people who are so ‘full of themselves’ and cocksure of their own abilities are the ones most likely to venture into markets that may be too small to accommodate another profitable business.
Research led by the University of Leicester, funded by the Economic and Social Research Council, has shown that overconfidence among businesspeople is a reason why many ventures fail in the first few years.
And the ones most culpable were people with absolute confidence in their own abilities.
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