Knowledge‐intensive entrepreneurship and human capital

Abstract

This paper discusses human capital in connection with the entrepreneurial processes in knowledge‐based new ventures. Until recently, research on the founding of new ventures has focused mainly on the personal characteristics of entrepreneurs, but this trait approach tends to underestimate the role of crucial skills. The findings of this paper suggest that it is not so much inherent personality traits that influence the foundation and growth of new ventures as previous employment and entrepreneurial experience. The longer the career path prior to founding the venture, the more experience an entrepreneur has accumulated. Age thus seems to have a positive influence on the success of a newly founded venture. Furthermore, the dimensions of human capital, experience and previous employment seem to be essential in building the networks that help secure both early and continuing finance for the ventures.