IDEAS home Printed from https://ideas.repec.org/a/rfa/bmsjnl/v6y2020i3p55-71.html
   My bibliography  Save this article

How Does the Entrepreneurs’ Financial, Human, Social and Psychological Capitals Impact Entrepreneur’S Success?

Author

Listed:
  • Ashraf Elsafty
  • Dalia Abadir
  • Ashraf Shaarawy

Abstract

The literature has widely covered the factors that determine the success of entrepreneurial ventures from financial and organizational perspectives. This study intends to tackle how the Financial Capital, the Human Capital, the Social Capital, and the Psychological Capital of the Entrepreneur affect Entrepreneurial Success. Despite that the Financial, Human, and Social Capitals are extensively examined in the literature as they relate to entrepreneurial success, this paper will add the psychological capital of the entrepreneur and examine its effect on entrepreneurial success in Egypt.This study aimed to investigate the effect of Financial Capital, Human Capital, Social Capital, and Psychological Capital on Entrepreneurial Success using a cross-sectional survey. Respondents were the owners and founders of small and medium enterprises (SMEs) in Cairo, Egypt. The results revealed that Social Capital and Psychological capital had a statistical significance as well as a positive strong relationship with Entrepreneurial success, while the Financial Capital and the Human Capital had statistical insignificance as well as a positive weak to a very weak relationship with Entrepreneurial success respectively.The study findings suggested that entrepreneurial success is strongly connected to the intangible resources of the entrepreneur, which are Social Capital and Psychological Capital, and that the Psychological Capital had the highest impact on Entrepreneurial success. However, the impact of the Financial Capital and Human Capital on Entrepreneurial Success was statistically insignificant.

Suggested Citation

  • Ashraf Elsafty & Dalia Abadir & Ashraf Shaarawy, 2020. "How Does the Entrepreneurs’ Financial, Human, Social and Psychological Capitals Impact Entrepreneur’S Success?," Business and Management Studies, Redfame publishing, vol. 6(3), pages 55-71, September.
    • Handle: RePEc:rfa:bmsjnl:v:6:y:2020:i:3:p:55-71
    as

    Download full text from publisher

    File URL: http://redfame.com/journal/index.php/bms/article/download/4980/5201
    Download Restriction: no
    File URL: http://redfame.com/journal/index.php/bms/article/view/4980
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Niels Bosma & Mirjam van Praag & Roy Thurik & Gerrit de Wit, 2004. "The Value of Human and Social Capital Investments for the Business Performance of Startups," Small Business Economics, Springer, vol. 23(3), pages 227-236, October.
    2. Gentiana Kraja, 2015. "Toward European Integration in Public Administration and Public Services," European Journal of Interdisciplinary Studies Articles, Revistia Research and Publishing, vol. 1, May - Aug.
    3. Chandler, Gaylen N. & Hanks, Steven H., 1998. "An examination of the substitutability of founders human and financial capital in emerging business ventures," Journal of Business Venturing, Elsevier, vol. 13(5), pages 353-369, September.
    4. Andrew M. Chisholm & Klaus Nielsen, 2009. "Social Capital and the Resource-Based View of the Firm," International Studies of Management & Organization, Taylor & Francis Journals, vol. 39(2), pages 7-32, January.
    5. Rosemary Atieno, 2009. "Linkages, Access to Finance and the Performance of Small-Scale Enterprises in Kenya," WIDER Working Paper Series RP2009-06, World Institute for Development Economic Research (UNU-WIDER).
    6. J. Augusto Felício & Eduardo Couto & Jorge Caiado, 2011. "Human capital and social capital in entrepreneurs and managers of small and medium enterprises," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 13(3), pages 395-420, June.
    7. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    8. Vila, José E. & Fornoni, Mariel & Palacios, Daniel, 2013. "Multidimensional social capital in new ventures," Nülan. Deposited Documents 1882, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    9. John B Miner, 1997. "A psychological typology and its relationship to entrepreneurial success," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 9(4), pages 319-334, January.
    10. Robert E. Carpenter & Bruce C. Petersen, 2002. "Is The Growth Of Small Firms Constrained By Internal Finance?," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 298-309, May.
    11. Luthans, Fred & Luthans, Kyle W. & Luthans, Brett C., 2004. "Positive psychological capital: beyond human and social capital," Business Horizons, Elsevier, vol. 47(1), pages 45-50.
    12. Shaike Marom & Robert N. Lussier, 2014. "A Business Success Versus Failure Prediction Model for Small Businesses in Israel," Business and Economic Research, Macrothink Institute, vol. 4(2), pages 63-81, December.
    13. Rosemond Boohene, 2018. "Entrepreneur’s Social Capital and Firm Growth: The Moderating Role of Access to Finance," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 26(03), pages 327-348, September.
    14. Jose Enrique Vila & Mariel Fornoni & Daniel Palacios, 2013. "Multidimensional social capital in new ventures," The Service Industries Journal, Taylor & Francis Journals, vol. 33(9-10), pages 820-832, July.
    15. Phillip Kim & Howard Aldrich & Lisa Keister, 2006. "Access (Not) Denied: The Impact of Financial, Human, and Cultural Capital on Entrepreneurial Entryin the United States," Small Business Economics, Springer, vol. 27(1), pages 5-22, August.
    16. Dinda, Soumyananda, 2008. "Social capital in the creation of human capital and economic growth: A productive consumption approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 2020-2033, October.
    17. Cooper, Arnold C. & Gimeno-Gascon, F. Javier & Woo, Carolyn Y., 1994. "Initial human and financial capital as predictors of new venture performance," Journal of Business Venturing, Elsevier, vol. 9(5), pages 371-395, September.
    18. Rosemond Boohene, 2018. "Entrepreneur’s Social Capital and Firm Growth: The Moderating Role of Access to Finance," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 26(03), pages 327-348, September.
    19. Panagiotis Ganotakis, 2012. "Founders’ human capital and the performance of UK new technology based firms," Small Business Economics, Springer, vol. 39(2), pages 495-515, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mr. Ngamsan Jirah Sunday & Mall. Yusuf Isa, 2023. "Impact Assessment of Training and Development in Nigeria University System for Job Satisfaction and Academic Staff Retention," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(2), pages 1076-1087, February.
    2. Ashraf Elsafty & Islam M. Elbouseery & Ashraf Shaarawy, 2020. "Factors Affecting the Behavioral Intention to Use Standalone Electronic Personal Health Record Applications by Adults in Egypt," Business and Management Studies, Redfame publishing, vol. 6(4), pages 14-35, December.
    3. S. Andrew Starbird & Jill M. Martin & Yacanex Posadas & Alma Gutiérrez, 2022. "The Impact of Formality, Integration, and Commitment on the Performance of Latino-Owned Small Businesses," Administrative Sciences, MDPI, vol. 12(3), pages 1-16, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Unger, Jens M. & Rauch, Andreas & Frese, Michael & Rosenbusch, Nina, 2011. "Human capital and entrepreneurial success: A meta-analytical review," Journal of Business Venturing, Elsevier, vol. 26(3), pages 341-358, May.
    2. Naiki, Eriko & Ogane, Yuta, 2021. "Are Japanese Full-time Workers Conservative in Starting New Businesses?," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    3. Wdowiak, Malgorzata A. & Schwarz, Erich J. & Breitenecker, Robert J. & Wright, Richard W., 2012. "Linking the cultural capital of the entrepreneur and early performance of new ventures: A cross-country comparison," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 17(2), pages 149-183.
    4. Eriko Naiki & Yuta Ogane, 2022. "Human capital effects on fundraising for necessity- and opportunity-based entrepreneurs," Small Business Economics, Springer, vol. 59(2), pages 721-741, August.
    5. Masatoshi Kato, 2017. "Founders’ human capital and external knowledge sourcing: An absorptive capacity perspective for innovative start-ups," Discussion Paper Series 162, School of Economics, Kwansei Gakuin University, revised Jun 2017.
    6. Christian Linder & Christian Lechner & Frank Pelzel, 2020. "Many Roads Lead to Rome: How Human, Social, and Financial Capital Are Related to New Venture Survival," Entrepreneurship Theory and Practice, , vol. 44(5), pages 909-932, September.
    7. Abeer Alomani & Rui Baptista & Suma S. Athreye, 2022. "The interplay between human, social and cognitive resources of nascent entrepreneurs," Small Business Economics, Springer, vol. 59(4), pages 1301-1326, December.
    8. Tomasz Mickiewicz & Frederick Wedzerai Nyakudya & Nicholas Theodorakopoulos & Mark Hart, 2017. "Resource endowment and opportunity cost effects along the stages of entrepreneurship," Small Business Economics, Springer, vol. 48(4), pages 953-976, April.
    9. Deniz Ucbasaran & Paul Westhead & Mike Wright, 2008. "Opportunity Identification and Pursuit: Does an Entrepreneur’s Human Capital Matter?," Small Business Economics, Springer, vol. 30(2), pages 153-173, February.
    10. Jan Brinckmann & Soeren Salomo & Hans Georg Gemuenden, 2011. "Financial Management Competence of Founding Teams and Growth of New Technology–Based Firms," Entrepreneurship Theory and Practice, , vol. 35(2), pages 217-243, March.
    11. Joan-Lluis Capelleras & Ignacio Contín-Pilart & Martin Larraza-Kintana, 2011. "Publicly Funded Prestart Support for New Firms: Who Demands it and How it Affects Their Employment Growth," Environment and Planning C, , vol. 29(5), pages 821-847, October.
    12. Xi, Guoqian & Block, Jörn & Lasch, Frank & Robert, Frank & Thurik, Roy, 2017. "How Does Firm Survival Differ between Business Takeovers and New Venture Start-ups?," IZA Discussion Papers 11155, Institute of Labor Economics (IZA).
    13. Pavlin Bonev & Henrik Egbert & Thomas Neumann, 2016. "Examining Entrepreneurial Potential," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(10), pages 1-16, September.
    14. Enrico Santarelli & Hien Tran, 2013. "The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam," Small Business Economics, Springer, vol. 40(2), pages 435-458, February.
    15. Thomas Ã…stebro & Kevyn Yong, 2016. "Invention Quality and Entrepreneurial Earnings: The Role of Prior Employment Variety," Entrepreneurship Theory and Practice, , vol. 40(2), pages 381-400, March.
    16. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    17. Michael Stuetzer & Martin Obschonka & Eva Schmitt-Rodermund, 2013. "Balanced skills among nascent entrepreneurs," Small Business Economics, Springer, vol. 41(1), pages 93-114, June.
    18. Elisa Ughetto, 2016. "Growth of born globals: the role of the entrepreneur’s personal factors and venture capital," International Entrepreneurship and Management Journal, Springer, vol. 12(3), pages 839-857, September.
    19. Elert, Niklas & Sjöö, Karolin & Wennberg, Karl, 2020. "When Less Is More: Why Limited Entrepreneurship Education May Result in Better Entrepreneurial Outcomes," Working Paper Series 1322, Research Institute of Industrial Economics.
    20. Phuoc Vu Ha & Michael Frömmel, 2019. "Social Capital, Credit Choices And Growth In Vietnamese Household Businesses," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 1-19, September.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfa:bmsjnl:v:6:y:2020:i:3:p:55-71. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Redfame publishing (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.