Cognitive Aspects of Entrepreneurship: Decision-Making and Attitudes to Risk

Abstract

Abstract This article reviews literature on the study of the cognition of entrepreneurs, and how this affects their attitudes to risk. The review begins with the heuristics and biases approach. Various decision-making biases related to over-optimism are then considered. Following this perceived self-efficacy, intrinsic motivation and intentions-based models are discussed. Some theories dealing specifically with attitudes to risk are then covered. These include prospect theory, Kahneman and Lovalo's model of risk-taking, and Das and Teng's theory of risk horizons and future orientations. Finally, the option value and information cost approach to the analysis of entrepreneurs' decision-making is discussed. Some relevant references to culture research are also given in the conclusion.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 36 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.