Impact of Cognitive and Emotional Bias on Students' Entrepreneurial Intention

Abstract

Entrepreneurial Intentions are not expanding as anticipated. In the growing economy, it is difficult to make any rational decision with the available information. The study focuses on understanding the impact of Cognitive and Emotional Bias on student's Entrepreneurial Intention. The primary data was gathered from 370 students from different higher educational institutions in India.  PLS-SEM was used to explore the impact of cognitive and emotional bias on entrepreneurial intention among the students. Multilayer Perceptron (MLP) was used to rank the results obtained from SEM based on the normalized importance. The results from the SEM and MLP ascertain that cognitive bias has more impact on EI. The attributes of cognitive bias overconfidence, loss aversion, and representativeness influence the students' entrepreneurial intention. The study found that cognitive and emotional biases help individuals make more informed decisions, assess opportunities realistically, and enhance their overall entrepreneurial intention. The study on Entrepreneurial Intention has a practical implication for higher educational institutions and policymakers. Firstly, this study helps higher education institutions plan their curriculum, specifically addressing cognitive biases, emotional biases, and decision-making in entrepreneurial contexts. Secondly helps the policymakers develop a framework to overcome the cognitive and emotional challenges associated with entrepreneurship