Optimism and chance: The elephants in the entrepreneurship room

This article argues that existing theories of new and small firms fail to capture the temporal diversity of such enterprises. Most are ‘one-way bets’ because they provide an explanation only for growing firms. To address this, this article combines the role of chance with the optimism of the business owner into optimism and chance (OC) theory. This provides an insight into why, for example, very few new or small firms grow continuously and why, when compared to Europe, individuals in the USA who initially failed in business, ultimately became successful.