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

24 Pages Posted: 22 Dec 2011

See all articles by Arnout Seghers

Arnout Seghers

Ghent University - Faculty of Economics and Business Administration

Sophie Manigart

Vlerick Business School; Ghent University

Tom R. Vanacker

Ghent University; University of Exeter Business School

Multiple version iconThere are 2 versions of this paper

Date Written: January 2012

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.

Suggested Citation

Seghers, Arnout and Manigart, Sophie and Vanacker, Tom R., The Impact of Human and Social Capital on Entrepreneurs’ Knowledge of Finance Alternatives (January 2012). Journal of Small Business Management, Vol. 50, Issue 1, pp. 63-86, 2012. Available at SSRN: https://ssrn.com/abstract=1975674 or http://dx.doi.org/10.1111/j.1540-627X.2011.00344.x

Arnout Seghers (Contact Author)

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

Ghent, B-9000
Belgium

Sophie Manigart

Vlerick Business School ( email )

Reep 1
Ghent, BE-9000
Belgium

Ghent University ( email )

Sint-Pietersplein 7
Gent, 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

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
2
Abstract Views
729
PlumX Metrics