The impact of human and social capital on entrepreneurs’ knowledge of finance alternatives
This paper examines how entrepreneurs’ human and social capital influence their knowledge of finance alternatives. For this purpose, we use survey data from 125 Belgian start-ups. Results demonstrate that entrepreneurs with a business education and entrepreneurs with experience in accountancy or finance have a broader knowledge of finance alternatives. Having a strong network in the financial community further enhances the knowledge of finance alternatives. However, more generic human capital has almost no impact on the knowledge of finance alternatives. Overall, this study demonstrates how not only supply-side factors, but also demand-side factors may constrain entrepreneurs in their search for finance.
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