The Role of Social and Human Capital Among Nascent Entrepreneurs

Posted: 4 Nov 2009

See all articles by Benson Honig

Benson Honig

McMaster University

Per Davidsson

Queensland University of Technology - Brisbane Graduate School of Business

Date Written: 2000

Abstract

In considering the propensity of individuals towardentrepreneurship, the common "trait" approach is unsatisfactory becauseit suffers from self-selection bias or the oversampling of highly successfulfirms. In this study, 452 nascent entrepreneurs from the general Swedish populationwere interviewed in May-September 1998 focusing on 22 behaviors thatdemonstrate actively beginning the business creation process. The sociologicalcharacteristics of the nascent entrepreneurs and the comparative importance oftheir personal networks and business education are investigated. The results demonstrate the importance of social capital at both the familyand individual levels. Having parents in business, friends in business, andencouragement from friends and family are strongly associated with nascentactivity. Identifying oneself in an established business network issignificant. The results only weakly support the role of formal education inpredicting nascent entrepreneurship or comparative success. The public policyimplications of these results for encouraging entrepreneurial social capitalare also discussed. (TNM)

Keywords: Nascent entrepreneurs, Startups, Entrepreneurship education, Social capital, Human capital, Individual traits

Suggested Citation

Honig, Benson and Davidsson, Per, The Role of Social and Human Capital Among Nascent Entrepreneurs (2000). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship. Available at SSRN: https://ssrn.com/abstract=1497843

Benson Honig

McMaster University ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada

Per Davidsson

Queensland University of Technology - Brisbane Graduate School of Business ( email )

Brisbane
Australia
+61 7 3864 2051 (Phone)
+61 7 3864 1299 (Fax)

HOME PAGE: http://www.qut.edu.au/ph_server_query.do

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