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Exploring The Nature And Impact Of Gestation-Specific Human Capital Among Nascent Entrepreneurs

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  • MONICA DIOCHON

    ()
    (Schwartz School of Business Administration and Information Systems, St. Francis Xavier University, Antigonish, Nova Scotia, Canada B2G 2W5, Canada)

  • TERESA V. MENZIES

    (Faculty of Business, Brock University, St. Catharines, Ontario, Canada L2S 3A1, Canada)

  • YVON GASSE

    (Faculté des sciences de l'administration, Université Laval, Sainte-Foy, PQ, Canada G1K 7P4, Canada)

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    Abstract

    This article explores the nature and impact of gestation-specific human capital on successful start-up among a random sample of Canadian nascent entrepreneurs. Although much is known about the relationship between individual-level factors and the probability of becoming a nascent entrepreneur, the same cannot be said for the relationship between individual-level factors and success in starting a business. Previous studies of existing business founders indicate that general human capital (education and work experience) plays a role in opportunity identification, but at best plays a very weak role in opportunity pursuit. In light of these findings we sought to identify elements of human capital that would be specific to gestation–previous start-up experience, completion of classes or workshops in starting a business, and financial management capability (FMC). In documenting these elements, we found the majority of the sample had not taken any classes or workshops on starting a business, were novices to the start-up process, and were characterized by a wide range of financial management capability. Among those nascent entrepreneurs who succeeded in starting a business, FMC was found to be associated with sustainability. We conclude by discussing implications for researchers.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Journal of Developmental Entrepreneurship.

    Volume (Year): 13 (2008)
    Issue (Month): 02 ()
    Pages: 151-165

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    Handle: RePEc:wsi:jdexxx:v:13:y:2008:i:02:p:151-165

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    Related research

    Keywords: Nascent entrepreneurs; financial management capability; gestation-specific human capital; new venture creation;

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    Cited by:
    1. Dawn DeTienne & Melissa Cardon, 2012. "Impact of founder experience on exit intentions," Small Business Economics, Springer, vol. 38(4), pages 351-374, May.
    2. Per Davidsson & Scott Gordon, 2012. "Panel studies of new venture creation: a methods-focused review and suggestions for future research," Small Business Economics, Springer, vol. 39(4), pages 853-876, November.
    3. Semrau, Thorsten & Werner, Arndt, 2009. "How exactly do networking Investments pay off? Analyzing the impact of nascent Entrepreneurs networking Investments on Access to Start-Up Resources," MPRA Paper 18350, University Library of Munich, Germany.
    4. Parker, Simon C., 2011. "Intrapreneurship or entrepreneurship?," Journal of Business Venturing, Elsevier, vol. 26(1), pages 19-34, January.
    5. Belso-Martinez, Jose A. & Molina-Morales, F. Xavier & Mas-Verdu, Francisco, 2013. "Combining effects of internal resources, entrepreneur characteristics and KIS on new firms," Journal of Business Research, Elsevier, vol. 66(10), pages 2079-2089.

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