Entrepreneurial Backgrounds, Human Capital and Start-up Success

Rui Baptista (), Murat Karaoez () and Joana Mendonça ()
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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 ()

No 2007-045, Jena Economic Research Papers from Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics

Abstract: We examine whether founders’ 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.

Keywords: Founders' backgrounds; Human capital; Start-up Success; Pre-entry capabilities; Spin-offs; Habitual entrepreneurs (search for similar items in EconPapers)
JEL-codes: D21 L10 M13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-ent and nep-hrm
Date: 2007-07-31
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