This paper investigates the unique and joint effects of population density and early-stage entrepreneurs' human capital endowments (higher education, entrepreneurship training and owner-manager experience) on entrepreneurial growth aspirations. We test a number of hypotheses using data that combine individual and province level information in Spain over the period [2008][2009][2010]. We argue that growth aspirations of early-stage entrepreneurs are higher in more densely populated regions, but that such environmental influence is stronger for individuals with greater human capital. This is because they will be more aware that denser regions offer more favorable conditions for new businesses and also requires greater firm growth to compensate for a higher risk of business failure. Consistent with our view, we find that the growth aspirations of entrepreneurs with higher education are higher in densely populated provinces. 20 More specifically, we argue that their education and experience will play a key role in shaping how population density affects growth aspirations. Human capital gained through formal educational processes or previous experience allows entrepreneurs to gauge more accurately the environment's opportunities and threats, and greater human capital also increases the selfefficacy of entrepreneurs (Autio and Acs 2010). Overall, then, we expect that growth aspirations in regions with greater population density will be higher for those entrepreneurs with larger endowments of human capital. This is the main contribution of our study.Our empirical analysis is based on a sample of 1835 early-stage entrepreneurs in Spain. We concur with the view of the Global Entrepreneurship Monitor (GEM) project and define an early-stage entrepreneur as an individual who is active in the process of starting a new firm for less than 42 months. The data set we employ combines individual-level information obtained from the GEM project in Spain with province-level information gathered from the Spanish Statistics Institute during the time period 2008-2010.The rest of the paper is organized as follows. We start by developing and justifying four testable hypotheses; next we describe the data as well as our variables and methods used. After presenting the results of our empirical analysis, we conclude by discussing the implications of this research.
Theory and hypotheses
Population density and entrepreneurial growth aspirationsIndividual behavior takes place in a particular location and in an environment, that is partly region specific (Fritsch and Storey 2014). Entrepreneurs exhibit a strong tendency to locate their respective businesses close to their place of residence (Figueiro et al. 2002;Dahl and Sorenson 2009), from which it follows that firm founders will be heavily influenced by the 26 of) the entrepreneurs' expected number of employees in the next five years and the actual number of employees, exclusive of owners, at the firm's inception. 31 Regional-level predictor. Prior work has found a link between population...