Human Capital Based Determinants of Opportunity Identification
15 Pages Posted: 24 Mar 2011
Date Written: 2003
This study tests the role of human capital in the identification and pursuit of opportunities in terms of general human capital (education, age and gender) and specific human capital (i.e., managerial capabilities, opportunity identification capabilities, technical capabilities, business ownership experience and attitudes). Using a large representative sample of founders of 662 private independent firms we find that for information search intensity and the number of opportunities pursued, human capital specific to entrepreneurship was found to be more important than general human capital. General human capital is as important as specific human capital with regard to opportunity identification. Importantly, while all capabilities (i.e. managerial, entrepreneurial and technical) significantly influenced search intensity, only the entrepreneurial capability was found to be related to opportunity identification and pursuit.
JEL Classification: M13
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