In my experience, heightened confidence or overconfidence has typically been viewed as a mostly positive attribute of an entrepreneur with the theory being that they are more inclined to take an initial risk. I read an interesting statistic in my ADR book that has a different perspective. The passage points out that “overconfidence leads us to discount small probabilities, assume luck runs in our favor, and distort unattractive consequences…. Over 80% of interviewed entrepreneurs described their chances of success as 70% or better, and 33% described them as ‘certain.’ This compares to a five-year survival rate for new firms around 33%.” The book goes on to highlight the fact that this type of confidence prevents us from seeing the “range of potential outcomes.” The moral of the story is that while entrepreneurs exuding confidence may help them take the initial leap, it can impede actual success, because one is not prepared to handle/adapt to different hurdles and outcomes.
Menkel-Meadow, Love, Schneider, and Sternlight. Dispute Resolution, Beyond the Adversarial Model. 2nd. New York: Aspen Publishers, 2011. 178. Print.