Abstract. The purpose of this study was to further explore differences between entrepreneurs decision-makings. However, rather than focusing on previously examined individual differences, this study examined differences in the decision-making processes used by entrepre- neurs. Building on nonrational decision-making models from behavioral decision theory, we asserted that entrepreneurs are more susceptible to the use decision-making biases and heuristics than are managers in large organizations.The use ofbiases and heuristics may also offer some help in explaining why entrepreneurs sometimes make bad managers. Whereas the use ofcognitive biases may be beneficial in some cir- cumstances, it can lead to major errors in others. Although research has yet to establish performance implications, it is possible that the more extensive use ofheuristics in strategic decision-making may be a great advantage during the start-up years. However, it may also lead to the demise ofa business as a firm matures.