The impact of human capital on the early success of necessity versus opportunity-based entrepreneurs

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

Small Business Economics, 2014, vol. 42, issue 4, 847 pages

Abstract: This paper examines whether founders’ backgrounds influence new firm survival in the early years after startup, focusing, in particular, on the impact of unemployment-driven entrepreneurship. For entrepreneurs who left their previous employment to found a new firm, both general and specific human capital play a key role in enhancing early survival chances. However, various forms of human capital have little effect on early survival of unemployment-driven entrepreneurs, who rely mostly on previous entrepreneurial experience to persevere. Results suggest that pre-entry capabilities play an important role in the early success of opportunity-based entrepreneurs, but have little influence on the early success of necessity-based ones. Copyright Springer Science+Business Media New York 2014

Keywords: Entrepreneur human capital; Pre-entry capabilities; New firm survival; Opportunity-based entrepreneurship; Necessity-based entrepreneurship; L26 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/s11187-013-9502-z

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