Does entrepreneur dispositional optimism bias affect small firms' technical efficiency

Elhem Ben Fatma · Ezzeddine Ben Mohamed · Sami Boudabbous

20 citations0/0 files storedInternational Journal of Entrepreneurship and Small Business

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Entrepreneurship Studies and Influences Efficiency Analysis Using DEA Firm Innovation and Growth

Abstract

The aim of this paper is to investigate the effect of entrepreneurs' dispositional optimism on small business firm efficiency in the Tunisian context. Using a stochastic frontier analysis technique adjusted to an entrepreneur dispositional optimism bias, we estimate the efficiency score and then we demonstrate that the inefficiency term is explained by entrepreneur dispositional optimism. Our data consists of 67 small firms between 2008 and 2012. Our results highlight that other entrepreneurial characteristics and social network can explain technical efficiency.

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