The value of human and social capital investments for the business performance of startups

Niels Bosma, Mirjam Van Praag, Roy Thurik, Gerrit De Wit

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

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 substantially and significantly. Specific attention is paid to the unobserved talent bias. Moreover, the effect of the emergence of so called "knowledge industries" is explored.

Original languageEnglish
Pages (from-to)227-236
Number of pages10
JournalSmall Business Economics
Volume23
Issue number3
DOIs
Publication statusPublished - 1 Oct 2004
Externally publishedYes

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