TITLE

ENTREPRENEURIAL OPTIMISM, THE NATURE OF ENTREPRENEURIAL EXPERIENCE AND DEBT DECISION FOR BUSINESS START-UP

AUTHOR(S)
FOURATI, HÉDIA; ATTITALAH, RIHAB BEN
PUB. DATE
April 2018
SOURCE
International Journal of Innovation Management;Apr2018, Vol. 22 Issue 3, p-1
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper studies the entrepreneurial optimism and debt decisions for business start-up. By analysing a sample of 160 business start-up and by using the panel data estimation, we study entrepreneurs' optimism and its impact on debt decision of business start-up. The measure of entrepreneurial optimism is based on the entrepreneur earnings forecasts initiated by Lin et al. (2005). Meanwhile, the nature of entrepreneurial experience (serial and portfolio entrepreneur) has an effect on entrepreneurial optimism and leads to more or less optimistic entrepreneur. The results reveal that optimistic entrepreneur prefers equity in funding the financial deficit. Serial entrepreneurs tend to use more debt funding. In the dynamic model, the entrepreneur acquiring business concurrently adjusts slowly to debt ratio. Nevertheless, the sequential entrepreneurial experience leads to more optimism and so on more debt use. Given the governance role played by banks, the high adjustment cost for start-up is a consequence of the efficiency of the quality of control exercised by banks that in spite of entrepreneurial optimism, the entrepreneur does not convince the financiers to be so confident on the prospect of the business.
ACCESSION #
128744814

 

Related Articles

  • The knowledge spillover theory of entrepreneurship. Acs, Zoltan J.; Audretsch, David B.; Lehmann, Erik E. // Small Business Economics;Dec2013, Vol. 41 Issue 4, p757 

    According to the knowledge spillover theory of entrepreneurship, the context in which decision-making is derived can influence one’s determination to become an entrepreneur. In particular, a context that is rich in knowledge generates entrepreneurial opportunities from those ideas. By...

  • RESEARCH ON INVESTMENT ESTIMATION WHEN DECIDING TO START A NEW BUSINESS. GUGA, Lucian // Bulletin of the Transilvania University of Brasov. Series V: Eco;2014, Vol. 7 Issue 1, p85 

    An entrepreneur has to follow several steps when deciding to start a new business. Starting a business involves planning, making key financial decisions, completing a series of legal activities, hiring reliable employees and after all of this the success of the new firm is determined by a few...

  • CPAs as advisers to entrepreneurs.  // CPA Journal;Aug96, Vol. 66 Issue 8, p8 

    Reports on the results of a study `Creating a New Venture? Business Activities Essential for Entrepreneurship,' by the S.S. Tyler of the Entrepreneurship and Personal Enterprise program associated with Cornell University in Ithaca, New York. Objectives of the study; Essential activities for...

  • Help for your business.  // Crain's New York Business;12/15/97, Vol. 13 Issue 50, p21 

    Presents suggestions for persons interested in setting up their own businesses in New York City. Experience of Dolly Nielsen, owner of a public relations firm; Assistance given by small business development centers; Reference to the public and private sector resources that are available; Citing...

  • How to start an Inc. 500 Company. Brokaw, Leslie; McDevitt, Kevin // Inc.;1994 Inc. 500, Vol. 16 Issue 11, p50 

    Provides advice from successful entrepreneurs on how to start a new business. Explores six common questions; How to get credibility; If this can be done from your home; How much planning is necessary; How much industry experience is required; What to do if someone steals your idea; Where to...

  • BUILD YOUR BUSINESS.  // Working Mother;Apr/May2012, Vol. 35 Issue 3, p32 

    An answer to a question on starting a new business is presented.

  • Be honest with yourself before taking step to entrepreneurship. Willax, Paul A. // New Hampshire Business Review;04/09/99, Vol. 21 Issue 8, p7 

    Focuses on issues that entrepreneurs must address before establishing a business. Understanding of the proposed business venture; Knowledge on target markets; Willingness to risk assets on the venture; Operating style.

  • Getting started. Shakespeare, Tonia L.; Brown, Carolyn M. // Black Enterprise;Dec94, Vol. 25 Issue 5, p36 

    Discusses five business possibilities for young entrepreneurs. Marketing T-shirts; Disc jockey (DJ) services; Steven Morales, 17, who started La Casa Catering; Views of Sandra Sowell-Scott, director of Youth Entrepreneurial Training at Temple University's Small Business Development Center; Video...

  • Look Before You Leap. Beech, Wendy // Black Enterprise;Sept99, Vol. 30 Issue 2, p95 

    Offers advice on starting a business. Factors for finding a business that fits; What should be remembered in buying a business; Importance of attending at least one business conference.

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics