<abstract xmlns="http://www.w3.org/1999/xhtml"><p>While an emerging line of research has begun to examine how firm survival correlates with the psychological trait of overconfidence, almost none of this work looks at how this relationship is mediated or modified by the minority status of the individual within the area of entrepreneurship. We employ a proportional hazard survival model and analyze the Kauffman Firm Survey (KFS) of entrepreneurs during the period of 2004-2012. We find that, while overconfidence relates to firm survival, it is more strongly related to survival for female than for male entrepreneurs. Our analysis is unique in examining the trait of overconfidence for small firm survival, and it is the first that we know of to stratify the effects of this overconfidence by gender. The present work has implications for possible methods and strategies to promote the entrepreneurship of individuals from underrepresented groups, with an eye towards owner-overconfidence helping female-led firms to survive the first few years of a firm’s existence.</p></abstract>

While an emerging line of research has begun to examine how firm survival correlates with the psychological trait of overconfidence, almost none of this work looks at how this relationship is mediated or modified by the minority status of the individual within the area of entrepreneurship. We employ a proportional hazard survival model and analyze the Kauffman Firm Survey (KFS) of entrepreneurs during the period of 2004-2012. We find that, while overconfidence relates to firm survival, it is more strongly related to survival for female than for male entrepreneurs. Our analysis is unique in examining the trait of overconfidence for small firm survival, and it is the first that we know of to stratify the effects of this overconfidence by gender. The present work has implications for possible methods and strategies to promote the entrepreneurship of individuals from underrepresented groups, with an eye towards owner-overconfidence helping female-led firms to survive the first few years of a firm’s existence.

Gender and Overconfidence in the Kauffman Firm Survey

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Gender and Overconfidence in the Kauffman Firm Survey"}

While an emerging line of research has begun to examine how firm survival correlates with the psychological trait of overconfidence, almost none of this work...

Gender and Overconfidence in the Kauffman Firm Survey

Published Online: Jan 21, 2020

Page range: 5 - 17

DOI: https://doi.org/10.2478/sbe-2019-0039

Keywords
Overconfidence, Firm Survival, Hazard Rates, Small Businesses, Kauffman Firm Survey

© 2019 Baek Young et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Gender and Overconfidence in the Kauffman Firm Survey

Published Online: Jan 21, 2020

Page range: 5 - 17

DOI: https://doi.org/10.2478/sbe-2019-0039

KeywordsOverconfidence, Firm Survival, Hazard Rates, Small Businesses, Kauffman Firm Survey

© 2019 Baek Young et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Overconfidence, Firm Survival, Hazard Rates, Small Businesses, Kauffman Firm Survey