Optimists have no realistic prospects of financial success, study states
| Oct 8, 2018, 10:04 IST
A research conducted by the University of Bath, the London School of Economics and Political Science, and Cardiff University in the UK have explored the consequences of becoming an entrepreneur for optimists. For those not in the know, optimists are those who tend to overestimate their chances of doing well and underestimate their probability of failure. As part of the research process, the researchers tracked individuals as they moved from paid employment to setting up their own business ventures and the study found that business owners with above average optimism earned some 30% less than those with below average optimism.
Realists and pessimists are less likely to proceed with unpromising entrepreneurial ventures. “Our results suggest that too many people are starting business ventures, at least as far as personal returns are concerned,” said Chris Dawson, an associate professor at the University of Bath. “As a society, we celebrate optimism and entrepreneurial thinking but when the two combine it pays to take a reality check,” said Dawson. “Pessimism may not generally be seen as a desirable trait but it does protect people from taking on poor entrepreneurial projects,” he added.
Realists and pessimists are less likely to proceed with unpromising entrepreneurial ventures. “Our results suggest that too many people are starting business ventures, at least as far as personal returns are concerned,” said Chris Dawson, an associate professor at the University of Bath. “As a society, we celebrate optimism and entrepreneurial thinking but when the two combine it pays to take a reality check,” said Dawson. “Pessimism may not generally be seen as a desirable trait but it does protect people from taking on poor entrepreneurial projects,” he added.