Entrepreneurial Backgrounds, Human Capital and Start-Up Success

Abstract:     
We examine whether founders' backgrounds influence new firm survival in the early years after start-up. We develop hypotheses linking founders' backgrounds to pre-entry capabilities associated with entrepreneurial human capital, highlighting the cases of spin-offs and habitual entrepreneurs. The subject of unemployment-driven entrepreneurship is also explored. We find that specific human capital more frequently found in spin-off founders plays a key role in enhancing survival chances, while more general forms of human capital may help inexperienced entrepreneurs overcome the barrier posed by the critical early years after start-up.

Keywords: Founders' backgrounds, Human capital, Start-up Success, Pre-entry capabilities, Spin-offs, Habitual entrepreneurs

JEL Classifications: D21, L10, M13

Working Paper Series