Human Capital, Institutions, and Ambitious Entrepreneurship During Good Times and Two Crises

Strategic Entrepreneurship Journal, Forthcoming

50 Pages Posted: 2 Dec 2023

See all articles by Mircea Epure

Mircea Epure

Universitat Pompeu Fabra - Department of Economics and Business; Barcelona School of Economics; UPF Barcelona School of Management

Victor Martin-Sanchez

University of Southern Denmark

Sebastian Aparicio

Autonomous University of Barcelona; Fundación ECSIM Centro de Estudios en Economía Sistémica

David Urbano

Autonomous University of Barcelona

Date Written: October 11, 2023

Abstract

We argue that the positive relationship between pro-market institutions and entrepreneurial growth aspirations is dampened for individuals with general human capital (higher education), but augmented for those with specific human capital (experience in the marketplace). However, during a crisis, the differential effect of pro-market institutions on growth aspirations manifests only for entrepreneurs with specific human capital, with stronger effects than in good economic times. We run our empirical analysis on a dataset of individual- and country-level characteristics during 2005–2020, thus exploiting variation from the Global Financial Crisis and the Covid-19 pandemic. We confirm our predictions and show stronger results for early stage (compared to nascent) entrepreneurs, and potential complementarities between human capital types. Altogether, our work paves the way to institutional adaptive policymaking.

Keywords: pro-market institutions, human capital, growth aspirations, entrepreneurship, crisis

JEL Classification: L26, M13, I25, J24, K2

Suggested Citation

Epure, Mircea and Martin-Sanchez, Victor and Aparicio, Sebastian and Urbano, David, Human Capital, Institutions, and Ambitious Entrepreneurship During Good Times and Two Crises (October 11, 2023). Strategic Entrepreneurship Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=4647834

Mircea Epure (Contact Author)

Universitat Pompeu Fabra - Department of Economics and Business ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain

HOME PAGE: http://mirceaepure.com

Barcelona School of Economics ( email )

Carrer de Ramon Trias Fargas, 25-27
Barcelona, 08005
Spain

UPF Barcelona School of Management ( email )

Carrer de Balmes, 132, 134
Barcelona, 08008
Spain

Victor Martin-Sanchez

University of Southern Denmark ( email )

Campusvej 55
DK-5230 Odense, 5000
Denmark

HOME PAGE: http://www.victormartinsanchez.com

Sebastian Aparicio

Autonomous University of Barcelona ( email )

Plaça Cívica
Cerdañola del Valles
Barcelona, Barcelona 08193
Spain

Fundación ECSIM Centro de Estudios en Economía Sistémica ( email )

Cr. 43 A # 6 sur – 26, of. 423-424-425
Medellín, Antioquia
Colombia

HOME PAGE: http://www.ecsim.org

David Urbano

Autonomous University of Barcelona ( email )

Edifici B, Campus UAB
Bellaterra, Barcelona 08193
Spain
34935811209 (Phone)

HOME PAGE: http://www.davidurbano.eu

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