The Impact of a Diverse Human Resource Composition on the Survival of Start-Ups

27 Pages Posted: 19 Aug 2011

See all articles by Bram Timmermans

Bram Timmermans

Norwegian School of Economics (NHH); Aalborg University, Department of Business and Management

Date Written: March 23, 2010

Abstract

Over the last decades, many studies have been conducted that investigate the impact of diversity on the performance of teams. The goal of this chapter is to study the impact of a diverse composition in entrepreneurial ventures and how it affects the likelihood of survival. This impact will be determined by looking at demographic diversity, based on the ascribed (e.g. gender, age, nationality) and achieved (e.g. education and work experience) characteristics, of all the members of such a venture. This includes both founders and the first employees. The empirical part will rely on the Danish Integrated Database for Labor Market Research (IDA), which allows me to identify detailed firm and personal information. The results of the various analyses show a predominant neutral and negative effect of diversity on new firm survival, especially in those situations where there is a high degree of diversity on industry experience and educational background.

Keywords: entrepreneurship, teams, diversity

JEL Classification: M13, J21

Suggested Citation

Timmermans, Bram, The Impact of a Diverse Human Resource Composition on the Survival of Start-Ups (March 23, 2010). Available at SSRN: https://ssrn.com/abstract=1912422 or http://dx.doi.org/10.2139/ssrn.1912422

Bram Timmermans (Contact Author)

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway

Aalborg University, Department of Business and Management

Fibigerstr├Žde 4
Aalborg, DK-9220
Denmark

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