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New Firm Survival: Isolating the Role of Founders’ Human Capital in Accounting for Firm Longevity

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  • Grégoire Cauchie
  • Nicolas Gérard Vaillant

Abstract

The effect of the stock of human capital of entrepreneurs on business longevity is not clear-cut. Our study is based on a wide and comprehensive data set of more than 200,000 entrepreneurs settled in France over three cohorts (1994, 1998, and 2002). We highlight a positive correlation of both general (education) and specific (training) components of the stock of human capital with survival and show that these components appear to be substitutes. Our results also indicate that the magnitudes of the education and training effects seem to be considerably lower for necessity-driven entrepreneurs.

Suggested Citation

  • Grégoire Cauchie & Nicolas Gérard Vaillant, 2016. "New Firm Survival: Isolating the Role of Founders’ Human Capital in Accounting for Firm Longevity," Journal of Human Capital, University of Chicago Press, vol. 10(2), pages 186-211.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/686153
    DOI: 10.1086/686153
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    Cited by:

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    2. Ornella Wanda Maietta & Fernanda Mazzotta, 2018. "Firm Survival and Innovation: Knowledge Context Matters!," CSEF Working Papers 496, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    3. Hong-Jing Jia & Zi-Yin Zhuang & Yan-Xiang Xie & Yi-Xi Wang & Shi-Ying Wu, 2023. "Research on Dynamic Capability and Enterprise Open Innovation," Sustainability, MDPI, vol. 15(2), pages 1-23, January.
    4. Sophie Pommet & Jean-François Sattin, 2019. "CEO human capital and venture capital investment duration: Evidence from French IPOs," Post-Print halshs-02374003, HAL.
    5. Arnab Bhattacharjee & Ornella Maietta & Fernanda Mazzotta, 2023. "Spatial agglomeration, innovation and firm survival for Italian manufacturing firms," Spatial Economic Analysis, Taylor & Francis Journals, vol. 18(3), pages 318-345, July.
    6. Sophie Pommet & Jean-François Sattin, 2019. "CEO human capital and venture capital investment duration: Evidence from French IPOs," Economics Bulletin, AccessEcon, vol. 39(4), pages 2402-2414.

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