ENTREPRENEURS' OPTIMISM AND NEW VENTURE PERFORMANCE: A SOCIAL COGNITIVE PERSPECTIVE

Previous research indicates that entrepreneurs are generally high in dispositional optimism-the tendency to expect positive outcomes even when such expectations are not rationally justified. Findings of the current study demonstrate a negative relationship between entrepreneurs' optimism and the performance (revenue and employment growth) of their new ventures. Past experience creating ventures and industry dynamism moderated these effects, strengthening the negative relationship between entrepreneurs' optimism and venture performance. These findings illustrate the benefits of applying a social cognitive perspective toward efforts to understand key aspects of the new venture creation and development process.