Business Creators Radio Show With Adam Hommey Entrepreneurs Must Avoid Falling Prey to a Commitment Trap, With Vincent deFilippo
Research shows that although four out of five entrepreneurs believe they have a good — if not certain — chance of success, 74 percent of new start-up businesses fail, most often due to overconfidence and loss aversion.
Further, decision-makers tend to escalate their commitment even when knowing they’re in a failing course of action. This speaks to the inherent optimism and confidence of most entrepreneurs.
These same characteristics — overconfidence and fear of loss — also tend to foster an irrational escalation of commitment (EoC) when an entrepreneurial enterprise begins to fail.
Several theories regarding EoC behaviors offer insights into why entrepreneurs choose to escalate their efforts despite signs showing the project is failing.
Dr. Vincent deFilippo offers a detailed look at why we often get swallowed up in EOC scenarios and how we can avoid them.
Tune in to hear Dr. deFilippo’s thoughts on:
- What inspired you to write this book?
- Will you share with us a modern-day example of an escalation of commitment in a business context?
- What are some of the red flags that businesses miss that lead to an escalation of commitment?
- What is it about human nature that drives us to persist in a failing pursuit?
- How does escalation of commitment pertain to areas of our lives outside of business?
- What can help us improve our odds of not falling prey to an escalation of commitment?
- Will Big Data and AI help us make better decisions regarding when to walk away from a failing project?
- And much, much more!
The post Entrepreneurs Must Avoid Falling Prey to a Commitment Trap, With Vincent deFilippo first appeared on Business Creators Radio Show with Adam Hommey.