Journal 2: Industry choice by young entrepreneurs in different country settings: The role of human and financial capital
Industry choice by young entrepreneurs in different country settings: The role human and financial capital
Dmitri Knatko, Galina Shirokova & Karina Bogatyreva
- Hungary
- Mexico
- Estonia
- Romania
- Russia
- Argentina
- Brazil
- Colombia
- Poland
- Malaysia
Innovation-driven
Country (IDC)
- Austria
- Australia
- Belgium
- Canada
- Denmark
- England
- Spain
- Finland
- France
- Germany
- Greece
- Israel
- Italy
- Japan
- Luxembourg
- Netherlands
- Portugal
- Singapore
- Slovenia
- Switzerland
- United States
According to this paper, their study contributes to entrepreneurial entry research stream extending the understanding of entrepreneurial entry decision making nuances related to the individual access to resources and both industry and country-level contingencies. The level of human capital development is positively associated with the likelihood of knowledge-intensive industry choice by young entrepreneur. A better access to financial capital is positively associated with the likelihood of capital-intensive industry choice by young entrepreneurs. The positive relationship between human capital and the likelihood of knowledge-intensive industry choice by young entrepreneur will be stronger in innovation-driven country, the positive relationship between the availability of financial resources and the likelihood of capital-intensive industry choice by young entrepreneurs will be stronger in efficiency-driven countries.
The control variables which consist of gender; males and females, whether it is a family business, the type of industry (who have an entrepreneur family background), whether they have any specific field of study (law, business, economic), level of country institutional development which in this paper they use International Property Right Index (IPRI) and the gross national income per capita (GNIC) and lastly access to financial resources in a country.
Their study implies that young entrepreneur derive benefits from specific resources such as human and financial capital. The journal indicates that with higher level of human capital development expressed as a stage on the education ladder there is a better chance of an entry into a knowledge-intensive industry, whereas access to financial capital predicts an entry into a capital-intensive industry.
Besides, in innovation-driven countries, an undergraduate education level increases the probability to enter a knowledge-intensive industry, while a doctoral education level predicts an entry into a capital-intensive one. Lastly, in efficiency-driven countries, a better access to financial capital increases the probability of entering both capital- and knowledge-intensive industries, the latter being rather unexpected. Entrepreneurial entry decision is inseparable from entrepreneur’s choice of specific industry where entrepreneur plans to launch a venture.
The control variables which consist of gender; males and females, whether it is a family business, the type of industry (who have an entrepreneur family background), whether they have any specific field of study (law, business, economic), level of country institutional development which in this paper they use International Property Right Index (IPRI) and the gross national income per capita (GNIC) and lastly access to financial resources in a country.
Their study implies that young entrepreneur derive benefits from specific resources such as human and financial capital. The journal indicates that with higher level of human capital development expressed as a stage on the education ladder there is a better chance of an entry into a knowledge-intensive industry, whereas access to financial capital predicts an entry into a capital-intensive industry.
Besides, in innovation-driven countries, an undergraduate education level increases the probability to enter a knowledge-intensive industry, while a doctoral education level predicts an entry into a capital-intensive one. Lastly, in efficiency-driven countries, a better access to financial capital increases the probability of entering both capital- and knowledge-intensive industries, the latter being rather unexpected. Entrepreneurial entry decision is inseparable from entrepreneur’s choice of specific industry where entrepreneur plans to launch a venture.
link: Journal 2
Comments
Post a Comment