The Value of Human and Social Capital Investments for the Business Performance of Start-ups
We investigate the manifold posed question: "To what extent does investment in human and social capital, besides the effect of "talent", enhance entrepreneurial performance?". We distinguish between three different performance measures: survival, profits, and generated employment. On the basis of the empirical analysis of a rich Dutch longitudinal data set of firm founders, we conclude that specific investments indeed affect the three performance measures sub- stantially and significantly. Specific attention is paid to the unobserved talent bias. Moreover, the effect of the emergence of so called "knowledge industries" is explored.
|entrepreneurship, human capital, performance, small business, social capital, start-ups|
|Intertemporal Firm Choice and Growth, Investment, or Financing (jel D92), Human Capital; Skills; Occupational Choice; Labor Productivity (jel J24), New Firms; Startups (jel M13)|
|Tinbergen Institute Discussion Paper Series|
Bosma, N, van Praag, M, Thurik, A.R, & de Wit, G. (2002). The Value of Human and Social Capital Investments for the Business Performance of Start-ups (No. TI 02-027/3). Tinbergen Institute Discussion Paper Series. Retrieved from http://hdl.handle.net/1765/6821