Theoretical Reflections & Business Plan

This thesis sets out to explore the question – How does overconfidence affect entrepreneurial ventures? To answer this question a thorough body of literature has been reviewed. It turned out that this was a fairly well-researched area and many academic researchers have published on this topic. To support the body of literature, data has been collected through an auto-ethnographic perspective utilising “learning journals” in which one’s experience was documented in relation to an entrepreneurial project. It was established that overconfidence is easy to develop among entrepreneurs, especially in start-up or entrepreneurial ventures. It is the most common when entrepreneurs are experiencing familiarities in decision-making, or the opposite, when a situation is new that it becomes complex and ambiguous. In general, overconfidence among entrepreneurs is viewed as a negative trait as it clouds risk perception. On the contrary, it was argued that without overconfidence is necessary, otherwise would entrepreneurship never take place