Overconfidence, fear of failure, risk-taking and entrepreneurial intention: The behavior of undergraduate students

Abstract

This study investigates the relationship between students’ behavior, risk evaluation and entrepreneurial intention (EI) to verify whether overconfidence, fear of failure, risk-taking, and risk capacity affect overall risk evaluation. The study uses a sample of 828 undergraduate students from a variety of university programs, and the data were analyzed using exploratory factor analysis and hierarchical regression models. The results show that overconfidence, risk-taking, and risk capacity are related to EI. Further, overconfidence, fear of failure, and risk capacity are related to risk evaluation; thus, suggesting a relationship between students’ behavior, risk evaluation and EI. This study offers novel evidence that helps to better understand students’ risk behaviors and entrepreneurial decision-making.