Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2002-03-13 Number: 02-027/3 Author-Name: Niels Bosma Author-Email: email@example.com Author-Workplace-Name: EIM Business and Policy Research, Zoetermeer Author-Name: Mirjam van Praag Author-Email: firstname.lastname@example.org Author-Workplace-Name: Faculty of Economics and Econometrics, University of Amsterdam Author-Name: Roy Thurik Author-Email: email@example.com Author-Workplace-Name: CASBEC, Faculty of Economics, Erasmus University Rotterdam, and EIM Business and Policy Research, Zoetermeer Author-Name: Gerrit de Wit Author-Email: firstname.lastname@example.org Author-Workplace-Name: EIM Business and Policy Research, Zoetermeer Title: The Value of Human and Social Capital Investments for the Business Performance of Start-ups 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.
This discussion paper has resulted in a publication in Small Business Economics, 2004, 23(3), 227-36. Classification-JEL: M13; D92; J24 Keywords: entrepreneurship; human capital; social capital; small business; start-ups; performance File-Url: http://papers.tinbergen.nl/02027.pdf File-Format: application/pdf File-Size: 86832 bytes Handle: RePEc:tin:wpaper:20020027