Why Are Entrepreneurs Susceptible to Overconfidence Bias?
Entrepreneurs are naturally inclined to be optimistic and confident. These traits are essential for innovation and taking risks. However, this same optimism can make them susceptible to overconfidence bias. Factors contributing to this include:
Past Successes: Previous successes can create a false sense of infallibility. Passion and Enthusiasm: High levels of passion can cloud judgment and lead to unrealistic expectations. Selective Perception: Entrepreneurs may focus on positive feedback and ignore negative signals.