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Unwrapping opportunity confidence: how do different types of feasibility beliefs affect venture emergence?

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  • Laurent Vilanova

    (Univ Lyon, Lyon 2, Coactis)

  • Ivana Vitanova

    (Univ Lyon, Lyon 2, Coactis)

Abstract

This study examines whether and how entrepreneurial self-efficacy and low perceived environmental uncertainty—two feasibility beliefs that are assumed to increase the opportunity confidence of nascent entrepreneurs—have distinct or similar effects on venture emergence. Analyses of PSED data show that both beliefs have a positive indirect effect on venture emergence by increasing the effort of nascent entrepreneurs. However, low perceived environmental uncertainty induces other more complex and less favorable effects. Overall, our results suggest that the nature of nascent entrepreneurs’ feasibility beliefs (about the self or about the external environment) affects startup success. Implications for theory and practice are discussed.

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  • Laurent Vilanova & Ivana Vitanova, 2020. "Unwrapping opportunity confidence: how do different types of feasibility beliefs affect venture emergence?," Small Business Economics, Springer, vol. 55(1), pages 215-236, June.
    • Handle: RePEc:kap:sbusec:v:55:y:2020:i:1:d:10.1007_s11187-019-00159-4
    DOI: 10.1007/s11187-019-00159-4
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    Cited by:

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    3. Walsh, Christian & Knott, Paul & Collins, Jamie, 2020. "Emotional energy and opportunity confidence," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
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    6. Tristan Blick & Ine Paeleman & Eddy Laveren, 2024. "Financing constraints and SME growth: the suppression effect of cost-saving management innovations," Small Business Economics, Springer, vol. 62(3), pages 961-986, March.

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    More about this item

    Keywords

    Self-efficacy; Environmental uncertainty; Opportunity confidence; New venture creation; Motivation; Overconfidence;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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