“Bats are blind?” Cognitive Biases in Risk Perception of Entrepreneurs
Vol. Volume 22, Number 3 September/2017
Emre Sahin Dölarslan, Akin Kocak, Alper Ozer
In general, it could be said that bats are blind but they have high quality senses of smelling and hearing in order to survive. Similarly, entrepreneurs can look at the business world with different eyes to survive. This affects their cognitive biases in risk perception. The aim of this study was to analysis how entrepreneurs’ cognitive biases affect their opportunity exploitation and risk perception. In this study, self-efficacy, locus of control, overconfidence and optimism as dimensions of cognition were evaluated. Independently of our purpose, results also show that entrepreneurs have social capital such as experience and prior knowledge which forms their cognitive biases and leads them to perceive less risk when evaluating a new venture idea.
Cognitive bias, risk perception, social capital, experience, prior knowledge