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Human capital, institutions, and ambitious entrepreneurship during good times and two crises.

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Authors: Epure, Mircea1,2 (AUTHOR) mircea.epure@upf.edu, Martin‐Sanchez, Victor3 (AUTHOR), Aparicio, Sebastian4,5 (AUTHOR), Urbano, David4,5 (AUTHOR)
Source: Strategic Entrepreneurship Journal. Jun2024, Vol. 18 Issue 2, p414-447. 34p.
Subject Terms: *Human capital, *COVID-19 pandemic, *Global Financial Crisis, 2008-2009, *Businesspeople, *Regional development, *Startup costs, Entrepreneurship education
Abstract: Research Summary: We argue that the positive relationship between pro‐market institutions and entrepreneurial growth aspirations is dampened for individuals with general human capital (higher education), but augmented for those with specific human capital (experience in the marketplace). However, during a crisis, the differential effect of pro‐market institutions on growth aspirations manifests only for entrepreneurs with specific human capital, with stronger effects than in good economic times. We run our empirical analysis on a dataset of individual‐ and country‐level characteristics during 2005–2020, thus exploiting variation from the Global Financial Crisis and the COVID‐19 pandemic. We confirm our predictions and show stronger results for early stage (compared to nascent) entrepreneurs, and potential complementarities between human capital types. Altogether, our work paves the way to institutional adaptive policymaking. Managerial Summary: Pro‐market institutions facilitate business activity. We analyze a continuum of institutional arrangements and show asymmetric joint effects of the business context and human capital on entrepreneurial growth aspirations. General, education‐based human capital can collide with pro‐market contexts, weakening their positive effect on growth aspirations. In contrast, the interaction between pro‐market contexts and specific, market‐based human capital acts as a catalyst of growth aspirations. The (mis)alignment between pro‐market institutions and specific human capital from start‐up or investment experience gains an increased importance during the Global Financial Crisis and the COVID‐19 pandemic. Our findings are stronger for early stage business owners beyond the nascent phase, and complementarities can appear between education and market experience. We discuss policy implications for entrepreneurship education and regional development. [ABSTRACT FROM AUTHOR]
Database: Entrepreneurial Studies Source
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  Data: <searchLink fieldCode="JN" term="%22Strategic+Entrepreneurship+Journal%22">Strategic Entrepreneurship Journal</searchLink>. Jun2024, Vol. 18 Issue 2, p414-447. 34p.
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  Data: *<searchLink fieldCode="DE" term="%22Human+capital%22">Human capital</searchLink><br />*<searchLink fieldCode="DE" term="%22COVID-19+pandemic%22">COVID-19 pandemic</searchLink><br />*<searchLink fieldCode="DE" term="%22Global+Financial+Crisis%2C+2008-2009%22">Global Financial Crisis, 2008-2009</searchLink><br />*<searchLink fieldCode="DE" term="%22Businesspeople%22">Businesspeople</searchLink><br />*<searchLink fieldCode="DE" term="%22Regional+development%22">Regional development</searchLink><br />*<searchLink fieldCode="DE" term="%22Startup+costs%22">Startup costs</searchLink><br /><searchLink fieldCode="DE" term="%22Entrepreneurship+education%22">Entrepreneurship education</searchLink>
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  Data: Research Summary: We argue that the positive relationship between pro‐market institutions and entrepreneurial growth aspirations is dampened for individuals with general human capital (higher education), but augmented for those with specific human capital (experience in the marketplace). However, during a crisis, the differential effect of pro‐market institutions on growth aspirations manifests only for entrepreneurs with specific human capital, with stronger effects than in good economic times. We run our empirical analysis on a dataset of individual‐ and country‐level characteristics during 2005–2020, thus exploiting variation from the Global Financial Crisis and the COVID‐19 pandemic. We confirm our predictions and show stronger results for early stage (compared to nascent) entrepreneurs, and potential complementarities between human capital types. Altogether, our work paves the way to institutional adaptive policymaking. Managerial Summary: Pro‐market institutions facilitate business activity. We analyze a continuum of institutional arrangements and show asymmetric joint effects of the business context and human capital on entrepreneurial growth aspirations. General, education‐based human capital can collide with pro‐market contexts, weakening their positive effect on growth aspirations. In contrast, the interaction between pro‐market contexts and specific, market‐based human capital acts as a catalyst of growth aspirations. The (mis)alignment between pro‐market institutions and specific human capital from start‐up or investment experience gains an increased importance during the Global Financial Crisis and the COVID‐19 pandemic. Our findings are stronger for early stage business owners beyond the nascent phase, and complementarities can appear between education and market experience. We discuss policy implications for entrepreneurship education and regional development. [ABSTRACT FROM AUTHOR]
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RecordInfo BibRecord:
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    Identifiers:
      – Type: doi
        Value: 10.1002/sej.1492
    Languages:
      – Code: eng
        Text: English
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      Pagination:
        PageCount: 34
        StartPage: 414
    Subjects:
      – SubjectFull: Human capital
        Type: general
      – SubjectFull: COVID-19 pandemic
        Type: general
      – SubjectFull: Global Financial Crisis, 2008-2009
        Type: general
      – SubjectFull: Businesspeople
        Type: general
      – SubjectFull: Regional development
        Type: general
      – SubjectFull: Startup costs
        Type: general
      – SubjectFull: Entrepreneurship education
        Type: general
    Titles:
      – TitleFull: Human capital, institutions, and ambitious entrepreneurship during good times and two crises.
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            NameFull: Epure, Mircea
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            NameFull: Martin‐Sanchez, Victor
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            NameFull: Aparicio, Sebastian
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            – D: 01
              M: 06
              Text: Jun2024
              Type: published
              Y: 2024
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