This dissertation leverages cognition theory to examine the relationship between risk perceptions and venture creation decisions and seeks to establish overconfidence and perceived environmental munificence as boundary conditions for that relationship. Risk perceptions of the new venture are negatively associated with venture creation decisions. As the threat of possible loss and uncertainty associated with the new venture increase, the likelihood for gains associated with deciding to create the new venture decrease. Overconfidence and perceived environmental munificence are expected to moderate the relationship between risk perceptions of the new venture and venture creation decisions. Overconfidence is a cognitive bias that mitigates the relationship between risk perceptions of the new venture and venture creation decisions because the overconfident, while aware of risks, tend to be less sensitive to the possibilities of loss affecting their new ventures based upon skewed perceptions. Additionally, greater amounts of perceived environmental munificence are expected to weaken the negative relationship between risk perceptions of the new venture and venture creation decisions. The effects of risks on the new venture decision are perceived as less likely in resource-rich environments. The relationship between perceived risks and venture creation decisions is, thus, likely to be influenced by the boundary conditions of overconfidence and perceived environmental munificence. The results provide support for the hypothesized relationship between risk perceptions and venture creation decisions. It also provides evidence that perceived environmental munificence moderates the relationship between risk perceptions and venture creation decisions. However, it does not provide support for the hypothesized boundary condition of overconfidence.