Professor of Accounting and Control
The authors empirically examine the effect of self-efficacy on entrepreneurial investment choices. The authors identify various attributes of entrepreneurial investment and argue that higher self-efficacy is associated with more aggressive entrepreneurial investment decisions.The authors show that selfefficacy 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.