Does self-efficacy affect entrepreneurial investment?
Article first published online: 15 OCT 2009
© 2009 Strategic Management Society. Published by John Wiley & Sons, Ltd.
Strategic Entrepreneurship Journal
Volume 3, Issue 3, pages 241–260, September 2009
How to Cite
Cassar, G. and Friedman, H. (2009), Does self-efficacy affect entrepreneurial investment?. Strat.Entrepreneurship J., 3: 241–260. doi: 10.1002/sej.73
- Issue published online: 15 OCT 2009
- Article first published online: 15 OCT 2009
We empirically examine the effect of self-efficacy on entrepreneurial investment choices. We identify various attributes of entrepreneurial investment and argue that higher self-efficacy is associated with more aggressive entrepreneurial investment decisions. We show that self-efficacy increases the likelihood of being a nascent entrepreneur and creating an operating business. Self-efficacy also increases the proportion of personal wealth invested in the venture and the amount of hours per week the entrepreneur devotes to the venture. These results are significant even when controlling for other known characteristics associated with entrepreneurial investment. Copyright © 2009 Strategic Management Society.