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While everyone uses biases and heuristics to make decisions, entrepreneurs are much more likely to use two of these then managers in large organizations: the willingness to generalize from small samples (i.e., their personal experience) and their confidence in generalizing from these small samples. This enables entrepreneurs to make decisions that managers not operating with these biases would not make. This also explains why countless studies have found that entrepreneurs are no more comfortable with taking risks than non-entrepreneurs, even though entrepreneurs often engage in more risky actions than non-entrepreneurs. If a person is willing to confidently generalize from their personal experience, they simply do not see their actions as risky.

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