Intuition or Analysis? How Entrepreneurial Motivations Shape Decision‐Making Under Uncertainty

ABSTRACT Entrepreneurs frequently encounter ambiguous, uncertain situations that, despite limited information, require critical decisions. Their decisions are not homogeneous and, while prior research has emphasized external factors such as industry experience or context, these alone do not fully explain the heterogeneity observed in entrepreneurial decision‐making. This study integrates dual‐process theories of cognition (intuitive and analytical thinking) and motivations (intrinsic and extrinsic motives) to explore how nascent entrepreneurs approach decision‐making under uncertainty. Using think‐aloud protocols with 25 new entrepreneurs presented with an unfamiliar business scenario, we found that intrinsically motivated entrepreneurs predominantly adopted intuitive thinking. In contrast, extrinsically motivated entrepreneurs relied more heavily on analytical approaches. Those who relied extensively on analytical thinking sometimes suffered decision‐making paralysis. For scholars, the study offers novel insights into the interplay between motivations and cognitive processes, advancing our understanding of why entrepreneurs facing similar uncertainties reach different decisions and highlighting potential antecedents of entrepreneurial heterogeneity. For entrepreneurs, the findings emphasize the importance of self‐awareness to align individual motivations and cognitive approaches, enhancing their decision‐making effectiveness and reducing risks associated with misalignment.