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Examining Entrepreneurial Potential

Author

Listed:
  • Pavlin Bonev
  • Henrik Egbert
  • Thomas Neumann

    () (Fachhochschule-Anhalt)

Abstract

Employing public resources for promoting entrepreneurships demands careful selection of candidates who are most promising to set up a successful entrepreneurial career. This study addresses the relation between an individuals’ entrepreneurial potential, identified through personality traits, and aspects of human and social capital, based on prior individual experiences in the domain of self?employment. A psychometric test, called F?DUPN, measures the strengths of personality traits considered relevant for successful entrepreneurial activity. To test our hypotheses we collected data of 166 individuals. All of them are university students or graduates and have indicated a specific interest in entrepreneurial activity. A major result is that participants experienced in self-employment, with self-employed parents and with self-employed friends show a higher entrepreneurial potential than participants who do not have these experiences or relations. Furthermore, we find in line with other studies that differences in entrepreneurial potential become less pronounced with increasing age. An interpretation is that personality traits significant for entrepreneurial activity are not stable over time and can also be acquired at a later stage in life.

Suggested Citation

  • Pavlin Bonev & Henrik Egbert & Thomas Neumann, 2015. "Examining Entrepreneurial Potential," Bulgarian Economic Papers (www.bep.bg) bep-2015-02, St Kliment Ohridski University of Sofia, Faculty of Economics and Business Administration / Center for Economic Theories and Policies, revised Feb 2015.
  • Handle: RePEc:sko:wpaper:bep-2015-02
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    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.
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    3. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    4. Joop Hartog & Mirjam Van Praag & Justin Van Der Sluis, 2010. "If You Are So Smart, Why Aren't You an Entrepreneur? Returns to Cognitive and Social Ability: Entrepreneurs Versus Employees," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(4), pages 947-989, December.
    5. Marco Caliendo & Frank Fossen & Alexander Kritikos, 2014. "Personality characteristics and the decisions to become and stay self-employed," Small Business Economics, Springer, vol. 42(4), pages 787-814, April.
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    10. 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.
    11. Egbert, Henrik & Neumann, Thomas & Rasmus, Anke, 2014. "Matchingtools und Matchingprozesse im Kontext von Junior und Senior Entrepreneuren
      [Matching Tools and Processes in the Context of Junior and Senior Entrepreneurship]
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    More about this item

    Keywords

    psychometric test; human capital; social capital; observational learning; F-DUP; self-employment experience; personality traits;

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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