HOW SELF-EFFICACY AND OPTIMISM AFFECT U.S. MICROBUSINESSES

We examine the effect of Optimism and Self-Efficacy on the relative performance of microbusinesses in the U.S. Using survey data and Smart PLS we use a simple model to compare the effects of each attribute on performance. The data were collected for microbusinesses in the U.S. The results show that Self efficacy is far more important to the small firm than optimism is. In fact, it appears that optimism alone may have a negative impact on performance.