ENTREPRENEURIAL HUMAN CAPITAL AND NEW VENTURE PERFORMANCE: IN SEARCH OF THE ELUSIVE LINK

This paper develops a new operationalization of the entrepreneur as a combination of skills and motivations. It is proposed that entrepreneurial skills, in combination with the motivations of the entrepreneur, i.e., their reasons for starting a business, would define different "types" of e...

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Bibliographic Details
Published in:Academy of Entrepreneurship journal 2007-01, Vol.13 (1), p.1
Main Authors: Agarwal, Madhushree Nanda, Chatterjee, Gurgaon Leena
Format: Article
Language:English
Subjects:
Entrepreneurs
Entrepreneurship
Human capital
Mathematical models
Motivation
Researchers
Skills
Sociology
Startups
Success
Success factors
Venture capital
Online Access:Get full text
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Summary:This paper develops a new operationalization of the entrepreneur as a combination of skills and motivations. It is proposed that entrepreneurial skills, in combination with the motivations of the entrepreneur, i.e., their reasons for starting a business, would define different "types" of entrepreneurs. This typology is expected to have significant association with the strategic direction of the business, as well as its performance. Moreover, this research design would allow testing of an integrated model of New Venture Performance (NVP) by considering independent as well as interactional effects of the type of entrepreneur as well as the new venture strategy. The resulting conceptual framework proposes that certain combinations of entrepreneurial skills, motivations, and strategy may be more successful than others within a sample of new ventures. This link between the entrepreneurial human capital on the one hand, and the performance of the venture on the other can (i) validate the existence of a typology of entrepreneurs with the help of a theoretically grounded derivation; (ii) help the process of theory building in the area of entrepreneurship research, by allowing comparison and generalization of research findings, and (ii) replace the subjective assessment of entrepreneurial capability used by venture capitalists in evaluating proposals for financing new ventures. [PUBLICATION ABSTRACT]
ISSN:1087-9595
1528-2686