Decision Making Within the Individual-Opportunity Nexus: The Drivers of Venture Attractiveness

We examine how entrepreneurs’ perceptions regarding individual-opportunity fit inform venture attractiveness assessments. Using conjoint analysis, 110 aspiring entrepreneurs individually evaluate eight hypothetical ventures with various combinations of individual and venture specific characteristics. We find that self-efficacy and preferences for work experience over education, strong ties over weak ties, and low risk-low reward over high risk-high reward relate to venture attractiveness. Furthermore, entrepreneurial passion moderates risk preferences such that passionate entrepreneurs are more risk embracing. We make important theoretical contributions to our understanding of how aspiring entrepreneurs assess potential ventures, and the critical role of preferences and perceived individual-opportunity fit. The idiosyncratic nature of this perception argues for a more subjective focus in venture formation research.