Relationship between entrepreneurial optimism and entrepreneurial assets

Abstract. The aim of this study is to explore the relationship between entrepreneurial optimism and entrepreneurial assets, during the opportunity formation process. Entrepreneur is the central component in the entrepreneurship process. Much research has been done on external influences like environments and economics on the entrepreneurial process. However, comparatively less attention is given to the entrepreneur itself and to the intangible strengths and assets possessed by the entrepreneur. The primary aim and goal of our study is to evaluate if the intangible strengths and assets that an entrepreneur possesses, influences entrepreneurial optimism. A secondary goal is to study and test the hypothesis of over optimistic in entrepreneurs. The study draws on literature available for entrepreneurial optimism, opportunity formation and factors influencing optimism to develop a conceptual model. The constructionist approach to opportunity formation is identified and relied upon to examine the various factors that are identified from literature, which influence entrepreneurial optimism. Entrepreneurial assets namely, relevant knowledge, prior experience, educational background and networks are employed to understand if these create and drive entrepreneurial optimism. Qualitative analysis is chosen for the research purpose which is a suitable research method for the perceptional understanding of the optimism phenomenon. Six entrepreneurs were identified, and empirical data obtained from semi structured interview process. Thematic analysis is performed on the empirical data to arrive at important findings. The empirical findings are then compared to the findings from literature review, in order to arrive at the research conclusions and findings. The results of the study indicate that entrepreneurial optimism is created and driven by relevant knowledge, networks, prior work experience and educational background. The results also found prevalence of over optimism among entrepreneurs. It is found that entrepreneurs believe that other entrepreneurs are more overly optimistic in comparison to themselves. It is also found that prior entrepreneurial experience may or may not create optimism depending on the success of past ventures. This study contributes to existing knowledge on entrepreneurial optimism while making important contributions to its relationship with entrepreneurial assets. Altogether the study encourages future studies in the area of entrepreneurship as a research area