Is optimism helping or hurting entrepreneurs?

Mojca Svetek  |  20 September 2023

Optimism serves as a mood enhancer, antidepressant, and a potent confidence booster. Indeed, most psychologists agree that optimism is a vital to overall well-being.

Research demonstrates quite convincingly that optimists are more inclined to embark on the entrepreneurial path. It appears that optimism helps people get started on the entrepreneurial journey. But does optimism truly pay off for entrepreneurs in the long run? Join us in this episode as we delve into:

  • What optimism actually is (you might be surprised!);
  • How optimism shapes (entrepreneur’s) judgment;
  • The effect of optimism on business launch and survival;
  • The relationship between optimism and learning from feedback.

Research articles:

  • Bernoster, I., Rietveld, C. A., Thurik, A. R., & Torrès, O. (2018). Overconfidence, optimism and entrepreneurship. Sustainability, 10(7), 2233.
  • Carver, C. S., Scheier, M. F., & Segerstrom, S. C. (2010). Optimism. Clinical Psychology Review, 30(7), 879-889.
  • Croom, R., & Bono, J. E. (2015). Great expectations–really! The curvilinear relationship between optimism and performance. Academy of Management Proceedings, 2015(1), 17210-17220.
  • Kelberer, L. J., Kraines, M. A., & Wells, T. T. (2018). Optimism, hope, and attention for emotional stimuli. Personality and Individual Differences, 124, 84-90.
  • Kluemper, D. H., Little, L. M., & DeGroot, T. (2009). State or trait: effects of state optimism on job‐related outcomes. Journal of Organizational Behavior, 30(2), 209-231.
  • Koudstaal, M., Sloof, R., & Van Praag, M. (2015). Are entrepreneurs more optimistic and overconfident than managers and employees? (No. 15-124/VII). Tinbergen Institute Discussion Paper.
  • Langabeer, J. R., & DelliFraine, J. (2011). Does CEO optimism affect strategic process? Management Research Review, 34(8), 857-868.
  • Segerstrom, S. C. (2001). Optimism and attentional bias for negative and positive stimuli. Personality and Social Psychology Bulletin, 27(10), 1334-1343.
  • Tiger, L. (1995). Optimism: The Biology of Hope. Kodansha USA Inc.
  • Trevelyan, R. (2008). Optimism, overconfidence and entrepreneurial activity. Management Decision, 46(7), 986-1001.