Cognitive factors in discouraged borrowers: how entrepreneur's perception affects borrowing discouragement
International Journal of Entrepreneurial Behavior & Research
ISSN: 1355-2554
Article publication date: 2 November 2022
Issue publication date: 22 November 2022
Abstract
Purpose
This paper aims to investigate how cognitive factors affect borrowing discouragement among entrepreneurs. Specifically, the study tests the effects of overconfidence, dispositional optimism and entrepreneurial self-efficacy (ESE) on borrowing discouragement.
Design/methodology/approach
The study relies on Fraser's (2014) theoretical model to formulate the hypotheses. The results are based on a small sample of French entrepreneurs drawn from the AMADEUS database. Hierarchical Probit estimations are used to access the effects of the cognitive factors on borrowing discouragement.
Findings
The findings suggest that optimistic entrepreneurs are less likely to feel discouraged, while miscalibrated entrepreneurs are more prone to feel borrowing discouragement. There was no significant result for ESE and discouragement.
Originality/value
The study brings new implications and insights to the literature that investigates factors that cause discouragement in entrepreneurs, as well as implications for policymakers.
Keywords
Acknowledgements
Availability of data and material: Data belongs to the University of Strasbourg and will remain stored until the publication of this article.
Code availability: Not applicable.
Ethics approval: Not applicable.
Consent to participate: We conducted anonymous surveys that does not allow identification of the participant.
Consent for publication: Not applicable.
Funding: This work has benefitted from support by the initiative of excellence IDEX-Unistra (ANR-10-IDEX-0003-02) from the French national programme “Investment for the future”.
Conflicts of interest/Competing interests: The authors have no conflicts of interest to declare that are relevant to the content of this article.
Citation
Barasal Morales, A. (2022), "Cognitive factors in discouraged borrowers: how entrepreneur's perception affects borrowing discouragement", International Journal of Entrepreneurial Behavior & Research, Vol. 28 No. 8, pp. 2132-2150. https://doi.org/10.1108/IJEBR-05-2022-0428
Publisher
:Emerald Publishing Limited
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