Small Business Economics

, Volume 23, Issue 3, pp 227–236 | Cite as

The Value of Human and Social Capital Investments for the Business Performance of Startups

  • Niels Bosma
  • Mirjam van Praag
  • Roy Thurik
  • Gerrit de Wit


We investigate the manifold posed question: “To what extent does investment in human and social capital, besides the effect of ‘talent’, enhance entrepreneurial performance?” We distinguish between three different performance measures: survival, profits, and generated employment. On the basis of the empirical analysis of a rich Dutch longitudinal data set of firm founders, we conclude that specific investments indeed affect the three performance measures substantially and significantly. Specific attention is paid to the unobserved talent bias. Moreover, the effect of the emergence of so called "knowledge industries" is explored.


Manifold Social Capital Empirical Analysis Longitudinal Data Capital Investment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • Niels Bosma
    • 1
  • Mirjam van Praag
    • 2
  • Roy Thurik
    • 3
    • 4
  • Gerrit de Wit
    • 1
  1. 1.EIM Business & Policy ResearchZoetermeerThe Netherlands
  2. 2.Faculty of Economics and EconometricsUniversity of AmsterdamAmsterdam, Tinbergen InstituteThe Netherlands
  3. 3.Centre for Advanced Small Business Economics (CASBEC)Erasmus University RotterdamRotterdamThe Netherlands
  4. 4.EIM Business & Policy ResearchZoetermeerThe Netherlands

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