Exploring cognitive differences in prospective entrepreneurs: An analysis using propensity score matching

Abstract

Understanding the cognitive perspective is regarded as highly useful to the field of entrepreneurship. This study aims to understand the cognitive differences between individuals who wish to start their own business and those who do not, as well as those who started a business and those who have not engaged in entrepreneurship. Additionally, the analysis looks into whether these two groups have differences in business knowledge (BK) and active open-minded thinking (AOT). To ensure robust comparability between the two cohorts, we use propensity score matching (PSM) techniques, along with a range of covariates such as age, gender, education, income, the degree of optimism, the fear of failure, and the importance of belonging to the family. By analyzing data collected through surveys, we aim to uncover differences in cognitive dimensions that may influence entrepreneurial intention. The findings of this research study have implications for understanding the factors that contribute to entrepreneurial aspirations in order to provide valuable information for policy-informing. The paper can help develop tailored interventions aimed at fostering entrepreneurial ecosystems.