The Role of Entrepreneurial Emotions, Optimism, and Overconfidence in Shaping Entrepreneurial Behavior: The Mediating Effect of Attitude toward Entrepreneurship

Abstract

This study examines how entrepreneurial emotions, optimism, and overconfidence influence entrepreneurial behavior, with attitude toward entrepreneurship as a mediator. Drawing on the Theory of Planned Behavior and Affective Events Theory we propose a model where cognitive and affective factors shape behavior through attitudinal pathways. Data were collected from 450 students in Gujranwala, Pakistan, using validated scales for entrepreneurial emotions, optimism, overconfidence, and entrepreneurial behavior. Results from regression and mediation analyses (revealed three key findings: (1) Entrepreneurial emotions and optimism positively predicted attitude toward entrepreneurship, while overconfidence had a negative effect. (2) Attitude mediated 22–34% of the total effects of psychological traits on behavior and (3) Attitude was the strongest direct predictor of entrepreneurial behavior. These findings underscore the centrality of cognitive evaluations in translating emotions and biases into action, advancing theoretical integration in entrepreneurship research. Practical implications suggest that training programs should cultivate realistic optimism while mitigating overconfidence to foster sustainable venture creation. Limitations include cross-sectional design and regional sampling; future studies could employ longitudinal or experimental designs across diverse cultural contexts.