Entrepreneurial Backgrounds, Human Capital and Start-up Success
Rui Baptista (),
Murat Karaoez () and
Joana Mendonça ()
Additional contact information Murat Karaoez: IN+, Instituto Superior Tecnico, Technical University of Lisbon; IIBF, Department of Economics, Sueleyman Demirel University, Isparta, Turkey
Authors registered in the RePEc Author Service: Murat Karaöz ()
We examine whether foundersâ€™ backgrounds influence new firm survival in the early years after start-up. We develop hypotheses linking founders' backgrounds to pre-entry capabilities associated with entrepreneurial human capital, highlighting the cases of spin-offs and habitual entrepreneurs. The subject of unemployment-driven entrepreneurship is also explored. We find that specific human capital more frequently found in spin-off founders plays a key role in enhancing survival chances, while more general forms of human capital may help inexperienced entrepreneurs overcome the barrier posed by the critical early years after start-up.