“…Clearly, tht: effectivcncss of any effort directed at reducing PEU will depend on both the qiiantity and quality of infbrmation one possesses about the REE. It is assumccl that entreprencurs arc parricularly efl'ertive at reducing PEU and, therefore, at assessing risk, bccausc: (a) they possess supcrior information-gathering and -processing abilities (Gilacl 1982, Kirzncr 1973, blcclelland 1987, McGaffey and Christy 1975; (b) tht:y spend more tirnc developing contacts and exhibit a greater rate of participation in formal and informal networks (Aldrich and Zimmer 1986, Aldrich et al 1987, Bird 1989); (c) they spend more time than managers in scanning the REE for information, and have a deeper concern about the market positioning and growth potential of their firm (Kuehn and Johnson 1986); and (d) by being able to identify opportunities and to combine inputs in effective ncw ways (Bellu 1988, Mitton 1989, Schumpeter 1934) they possess a critical characteristic of new venture formation. A key point here is that, in view of the lirnitcd information processing capabilities of most humans (Simon 1957), entreprencurs possess a clecisi\~e advantage in their efforts at understanding their REE and at reducing the uncertainty emanating from it.…”