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Over-optimism and entry and exit from self-employment

Dawson, Chris and Henley, Andrew ORCID: 2013. Over-optimism and entry and exit from self-employment. International Small Business Journal 31 (8) , pp. 938-954. 10.1177/0266242612445462

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This article develops a conceptual framework for addressing the relationship between over-optimism and entry into, and survival in, self-employed business ownership. Previous research has rarely examined over-optimism and the dynamics of business ownership. Using a large-scale British longitudinal survey, the relationship between over-optimism and self-employment transitions is investigated. The results show that over-optimism is associated with higher transition into business ownership. However, over-optimism at the point of entry is also associated with lower rates of subsequent duration in business ownership, despite the possibility that exits may be slowed by threshold inertia and non-financial motives for remaining self-employed.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Publisher: SAGE
ISSN: 0266-2426
Last Modified: 01 Nov 2022 11:01

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