The Impact of a Diverse Human Resource Composition on the Survival of Start-Ups
27 Pages Posted: 19 Aug 2011
Date Written: March 23, 2010
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: Suggested Citation