The role of social and human capital among nascent entrepreneurs |
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| Institution: | 1. Alberta School of Business, University of Alberta, 2-29D Business Building, Edmonton, AB T6G 2R6, Canada;2. Schulich School of Business, York University, 4700 Keele Street, Toronto, ON M3J 1P3, Canada;3. Smeal College of Business, Room 416 Business Building, The Pennsylvania State University, University Park, PA 16802, United States;1. University of Notre Dame, Mendoza College of Business, Notre Dame, IN, United States of America;2. Hanken School of Economics, Helsinki, Finland;3. Institute of Technology Management, University of St Gallen, St Gallen, Switzerland;1. School of Business, Renmin University of China, China;2. Kelley School of Business, Indiana University, United States of America;1. University of Düsseldorf, Faculty of Business Administration and Economics, Universitätsstr. 1, 40225 Düsseldorf, Germany;2. University of Paderborn, Faculty of Business Administration and Economics, Warburger Str. 100, 33098 Paderborn, Germany |
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| Abstract: | This study examines nascent entrepreneurship by comparing individuals engaged in nascent activities (n=380) with a control group (n=608), after screening a sample from the general population (n=30,427). The study then follows the developmental process of nascent entrepreneurs for 18 months. Bridging and bonding social capital, consisting of both strong and weak ties, was a robust predictor for nascent entrepreneurs, as well as for advancing through the start-up process. With regard to outcomes like first sale or showing a profit, only one aspect of social capital, viz. being a member of a business network, had a statistically significant positive effect. The study supports human capital in predicting entry into nascent entrepreneurship, but only weakly for carrying the start-up process towards successful completion. |
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