Getting to the one: Prioritizing an idea set using preference-based decision-specific heuristics

ABSTRACT We propose and test a process where potential entrepreneurs (PEs) prioritize a venture idea consideration set using preference-based decision-specific heuristics to assess idea feasibility and desirability. We test our hypotheses through two studies with PEs. The first experiment shows that prioritization occurs, with 113 of 122 PEs voluntarily changing a randomized list of their ideated ventures into a rank-ordered priority list of potential opportunities. Second, we employ a novel “equivocal forced-choice” conjoint design with 250 PEs. We find empirical support that PEs prioritize via relative preferences for experience-based knowledge, strong social ties, and low risk/low reward venture ideas. We contribute to the entrepreneurship literature by theorizing and providing evidence of a prioritization stage for multiple idea sets before evaluation. Further, we demonstrate the influence of individual and social network factors on prioritization and expand our understanding of how PEs conceptualize risk in venturing.