Distance makes the heart grow fonder: A construal-level perspective on entrepreneurial opportunity evaluation

Drawing on construal-level theory (CLT), this study observes that potential entrepreneurs perceive less risk and are more likely to evaluate an opportunity positively when the psychological distance is far rather than near. Two experimental studies are conducted using two samples. We further demonstrate the weaker influence of psychological distance on opportunity evaluation through risk perception when entrepreneurs are experienced and have longer prior start-up experience. We contribute by highlighting the value of integrating CLT into research on entrepreneurial opportunities and revealing the effect of the various dimensions of psychological distance on opportunity evaluation. Moreover, we uncover the interrelationships between psychological distance and risk perception and entrepreneurial experience.