If asked whether their new business will succeed, over 80 per cent of entrepreneurs believe that it will, even though most new ventures fold within five years. Research suggests that people routinely overestimate their abilities. But, is overconfidence such a bad thing?
A recent study by a U of T Mississauga management professor suggests that overconfidence may actually be good for business-that, specifically, having an overconfident chief executive officer may boost corporate innovation, one of the most important sources of economic growth.