Research Of The Impact Of Entrepreneurial Failure Cost,entrepreneurial Cognitive Biases On Re-entrepreneurial Risk Perception

The rapid development of economy and the constant innovation of technology are the catalyst for the activity of the Entrepreneurial. However,although the current domestic Entrepreneurial activity continues to increase,but the failure rate of entrepreneurship is high. Entrepreneurial activity is a process, which is full of risks and uncertainties, the entrepreneurs in their re-entrepreneurial process will pay more attention to the management of risk. Risk perception is the start of risk management,therefore, the impact of the failure on entrepreneur will make them strengthen the perception of risk during the re-entrepreneurial process. At the same time,entrepreneurial failure will change the cognitive model of the entrepreneur,including the level of optimistic bias and over confidence; the different costs of failure lead to different level of re-entrepreneurial risk perception.Based on the risk management theory and cognitive theory, this paper discusses the relationship among entrepreneurial failure cost,entrepreneurial cognitive biasoptimistic bias, over confidence,and the re-entrepreneurial risk perception. And introducing the entrepreneurial failure cost as the independent variable, and the optimistic bias, over confidence as the intermediary variable, and the re-entrepreneurial risk perception as the dependent variable, to build the theoretical research model. Based on the basis of the existing theoretical research, through the development of the questionnaire, in Jiangsu, Zhejiang and Shanghai area were issued and 270 valid questionnaires,using regression analysis and structural equation model to test the hypotheses. The results show that the social cost of entrepreneurial failure,financial costs of entrepreneurial failure have a direct positive correlation with the re-entrepreneurial risk perception; the financial costs of entrepreneurial failure, the social cost of entrepreneurial failure have a significant negative correlation with the optimistic bias and over confidence, but the emotion costs of entrepreneurial failure have no direct positive correlation with the re-entrepreneurial risk perception; theemotion cost of entrepreneurial failure have no significant negative correlation with the optimistic bias and over confidence. There is a significant negative correlation between the over confidence, optimistic bias and the re-entrepreneurial risk perception.The cognitive bias of the entrepreneur, the optimistic bias, over confidence, have a partial mediation effect on the relationship between financial cost, the social cost and the re-entrepreneurial risk perception.This study clarified the mechanism of the entrepreneurial failure cost, the cognitive bias of the entrepreneur and the re-entrepreneurial risk perception, and revealed the intermediary role of the optimistic bias and the over confidence in the relationship between entrepreneurial failure cost and re-entrepreneurial risk perception.