The role of social and human capital among nascent entrepreneurs

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. Bridg...

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Bibliographic Details
Published in:Journal of business venturing 2003-05, Vol.18 (3), p.301-331
Main Authors: Davidsson, Per, Honig, Benson
Format: Article
Language:English
Subjects:
Business and economics
Business studies
Ekonomi
Entrepreneurs
Entrepreneurship
Företagsekonomi
Human capital
Nascent entrepreneurship
Organization theory
Roles
SAMHÄLLSVETENSKAP
Social capital
SOCIAL SCIENCES
Start-up process
Startups
Studies
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Summary: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.
ISSN:0883-9026
1873-2003
1873-2003
DOI:10.1016/S0883-9026(02)00097-6