The Impact of Human and Social Capital on Entrepreneurs’ Knowledge of Finance Alternatives

Journal of Small Business Management, Forthcoming

Posted: 9 Jan 2011

See all articles by Arnout Seghers

Arnout Seghers

Ghent University - Faculty of Economics and Business Administration

Tom R. Vanacker

Ghent University; University of Exeter Business School

Sophie Manigart

Vlerick Business School; Ghent University

Multiple version iconThere are 2 versions of this paper

Date Written: January 8, 2011

Abstract

Building upon prior research that demonstrates how the limited knowledge of finance alternatives of entrepreneurs may cause suboptimal finance decisions, this paper examines how entrepreneurs’ human and social capital influence their knowledge of finance alternatives. For this purpose, we use survey data from 103 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 is further positively associated with the knowledge of finance alternatives. However, generic human capital, including higher education, industry experience and management experience, is almost not related with the knowledge of finance alternatives.

Keywords: Enterpreneur, Human Capital, Knowledge, Finance, Startup

JEL Classification: G32, M13

Suggested Citation

Seghers, Arnout and Vanacker, Tom R. and Manigart, Sophie, The Impact of Human and Social Capital on Entrepreneurs’ Knowledge of Finance Alternatives (January 8, 2011). Journal of Small Business Management, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1736983

Arnout Seghers (Contact Author)

Ghent University - Faculty of Economics and Business Administration ( email )

Ghent, B-9000
Belgium

Tom R. Vanacker

Ghent University ( email )

Sint-Pietersplein 7
Gent, 9000
Belgium

University of Exeter Business School ( email )

Streatham Court
Exeter, EX4 4JH
United Kingdom

Sophie Manigart

Vlerick Business School ( email )

Reep 1
Ghent, BE-9000
Belgium

Ghent University ( email )

Sint-Pietersplein 7
Gent, 9000
Belgium

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