Journal Press India^®

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The research undertakes an attempt to investigate the relationship between risk perception, cognitive biases (overconfidence, illusion of control, belief in small numbers and over optimism) and venture creation among women entrepreneurs. It also examines whether risk perception mediates the relationship between cognitive biases and venture creation. A cross-sectional study of 350 women entrepreneurs residing in India was undertaken. Structural Equation Modelling (SEM) and mediation analysis were used to study the relation between various constructs under study. The study found that overconfidence and the illusion of control have lowered risk perception, which results in venture creation. However, belief in law of small numbers and over optimism significantly affect venture creation. The outcome has implications for how women entrepreneurs can avoid cognitive biases by thoroughly examining risk perception levels.

Keywords

Women Entrepreneurs; Venture Creation; Risk Perception

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