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

  • Rui Baptista

    ()

  • Murat Karaöz
  • Joana Mendonça

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

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File URL: http://hdl.handle.net/10.1007/s11187-013-9502-z
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Article provided by Springer in its journal Small Business Economics.

Volume (Year): 42 (2014)
Issue (Month): 4 (April)
Pages: 831-847

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Handle: RePEc:kap:sbusec:v:42:y:2014:i:4:p:831-847
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100338

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