Why Are There More Male Entrepreneurs Than Female Ones?
An edited transcript of the conversation appears below.
In fact, overconfidence is the biggest psychological predictor of whether or not you’re going to become an entrepreneur. Having misplaced confidence in yourself and thinking you can win when other people always lose is a strong predictor of entrepreneurship. We call this kind of overconfidence classic, Greek-style hubris — the idea of unfounded self-confidence.
“Overconfidence is the biggest psychological predictor of whether or not you’re going to become an entrepreneur.”
What we defined as hubris is trying to start a company, trying a second attempt at crowdfunding, when you failed by a lot the first time around. We defined humility as not trying again when you’ve had a big success. So, say I’ve raised $15,000 with a goal of $10,000: I should be more likely to try again; that tells me I’m very good at this. If I raised zero dollars out of $10,000, it tells me I’m bad at this.
“People who failed, but raised $9,000 out of the $10,000 — great. People who raised zero dollars out of $10,000 should be learning the lesson that they’re doing something wrong.”