Human capital and entrepreneurial success: a meta-analytical review

Human capital and entrepreneurial success: a meta-analytical review

31 January 2013 | Unger, Jens M.; Rauch, Andreas; Frese, Michael; et al.
This study meta-analytically integrates results from three decades of human capital research in entrepreneurship, based on 70 independent samples (N = 24,733). The findings indicate a significant but small relationship between human capital and success (r_c = .098). Moderator analyses revealed that the relationship is higher for outcomes of human capital investments (knowledge/skills) compared to direct investments (education/experience), for human capital with high task-relatedness compared to low task-relatedness, for young businesses compared to old businesses, and for size compared to growth or profitability. The study suggests that future research should focus on moderator approaches to study the effects of human capital on success, emphasizing the importance of task-related knowledge and skills over past experiences. Practical implications include guiding practitioners in evaluating small businesses and making informed investment decisions. The study also highlights the need to investigate the processes of learning, knowledge acquisition, and transfer of knowledge to entrepreneurial tasks.This study meta-analytically integrates results from three decades of human capital research in entrepreneurship, based on 70 independent samples (N = 24,733). The findings indicate a significant but small relationship between human capital and success (r_c = .098). Moderator analyses revealed that the relationship is higher for outcomes of human capital investments (knowledge/skills) compared to direct investments (education/experience), for human capital with high task-relatedness compared to low task-relatedness, for young businesses compared to old businesses, and for size compared to growth or profitability. The study suggests that future research should focus on moderator approaches to study the effects of human capital on success, emphasizing the importance of task-related knowledge and skills over past experiences. Practical implications include guiding practitioners in evaluating small businesses and making informed investment decisions. The study also highlights the need to investigate the processes of learning, knowledge acquisition, and transfer of knowledge to entrepreneurial tasks.
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Understanding Human capital and entrepreneurial success%3A A meta-analytical review