Human Capital and Entrepreneurial Success: A Meta-Analytical Review
Authors: Jens M. Unger, Andreas Rauch, Michael Frese, Nina Rosenbusch
Year: 2011
Methodology
- Sample: 14183
- Design: meta-analysis
- Data: 70 independent prospective and retrospective studies
Factors Extracted (6)
Task-related Human Capital (Knowledge/skills specific to the founder's task) [strong] — Correlation (rc) = 0.141
Industry-specific Experience [strong] — Correlation (rc) = 0.115
Prior Entrepreneurial Experience [moderate] — Correlation (rc) = 0.098
General Education (Years of schooling/degrees) [moderate] — Correlation (rc) = 0.085
Managerial Experience [moderate] — Correlation (rc) = 0.081
Startup Experience (specifically in the current venture's phase) [strong] — Correlation (rc) = 0.170
Key Findings
- The overall correlation between human capital and success is significant but small (rc = .098), suggesting human capital is a prerequisite but not a guarantee.
- Knowledge and skills (outcomes of investments) have a significantly higher correlation with success than proxy measures like years of experience or education.
- The relationship between human capital and success is significantly stronger in younger firms than in older, established firms.
Limitations
- Publication bias: Studies with non-significant results may be underrepresented in the meta-analysis.
- Causality: Meta-analyses of cross-sectional data cannot definitively prove that human capital causes success; success might allow for the acquisition of more human capital.
- Measurement heterogeneity: Different studies used widely varying definitions of 'success' (growth vs. profitability vs. survival).
Extracted by lib/ingest/literature_review.py via gemini-flash