Entrepreneurial Backgrounds, Human Capital and Survival in the Early Years after Start-Up

42 Pages Posted: 18 Oct 2007 Last revised: 23 Feb 2012

See all articles by Rui Baptista

Rui Baptista

Brunel Business School, Brunel University; Instituto Superior Tecnico, University of Lisbon

Murat Karaöz

Technical University of Lisbon

Joana Mendonça

Technical University of Lisbon (UTL)

Date Written: July 1, 2011

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. In particular, the subject of unemployment-driven entrepreneurship is explored. We find that both general and specific human capital play a key role in enhancing the early survival chances of entrepreneurs who left their employment to found new firms (which we deem opportunity-based entrepreneurs), but have little effect on the early survival chances of unemployment-driven entrepreneurs (which we deem necessity-based entrepreneurs). We infer that pre-entry capabilities of entrepreneurs are a key factor for both opportunity discovery and implementation.

Keywords: Founder Human capital, Pre-entry capabilities, New Firm Survival, Opportunity and Necessity Entrepreneurship

JEL Classification: D21, L10, M13

Suggested Citation

Baptista, Rui and Karaöz, Murat and Mendonça, Joana, Entrepreneurial Backgrounds, Human Capital and Survival in the Early Years after Start-Up (July 1, 2011). Available at SSRN: https://ssrn.com/abstract=1021206 or http://dx.doi.org/10.2139/ssrn.1021206

Rui Baptista (Contact Author)

Brunel Business School, Brunel University ( email )

Kingston Lane
Eastern Gateway Building
Uxbridge, Middlesex UB8 3PH
United Kingdom
+44 (0)1895 265890 (Phone)

HOME PAGE: http://www.brunel.ac.uk/bbs/people/academic-and-research-staff/full-time-faculty/rui-baptista

Instituto Superior Tecnico, University of Lisbon ( email )

Dep. of Engineering Management
Av. Rovisco Pais
Lisbon, 1049-001
Portugal

HOME PAGE: http://https://fenix.ist.utl.pt/homepage/ist14021?locale=en_EN

Murat Karaöz

Technical University of Lisbon ( email )

R. Miguel Lupi, 20
Lisbon, 1200
Portugal

Joana Mendonça

Technical University of Lisbon (UTL) ( email )

R. Miguel Lupi, 20
Lisbon, 1200
Portugal

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