The value of an educated population for an individual's entrepreneurship success

Abstract

The value of an educated population for an individual's entrepreneurship success Millán, J.M.; Congregado, E.; Román, C.; van Praag, C.M.; van Stel, A.J. Link to publication Citation for published version (APA):Millán, J. M., Congregado, E., Román, C., van Praag, M., & van Stel, A. (2011). The value of an educated population for an individual's entrepreneurship success. (Tinbergen Institute discussion paper; No. TI2011-065/3). Amsterdam/Rotterdam: Tinbergen Institute. General rightsIt is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), other than for strictly personal, individual use, unless the work is under an open content license (like Creative Commons). Disclaimer/Complaints regulationsIf you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the material inaccessible and/or remove it from the website. Please Ask the Library: http://uba.uva.nl/en/contact, or a letter to: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands. You will be contacted as soon as possible. Abstract:Human capital obtained through education has been shown to be one of the strongest drivers of entrepreneurship performance. The entrepreneur's human capital is, though, only one of the input factors into the production process of her venture. The value of other input factors, such as (knowledge) capital and labor is likely to be affected by the education level of the possible stakeholders in the entrepreneur's venture. The education distribution of the (local) population may thus shape the supply function of the entrepreneur. Likewise, the demand function faced by the entrepreneur is also likely to be shaped by the taste, sophistication and thus the education level of the population in their role as consumers. In other words, a population with a higher education level may be associated with (i) a working population of higher quality; (ii) more and/or higher quality universities with a positive effect on research and development (R&D) and knowledge spillovers leading to more high tech and innovative ventures; and finally, (iii) a more sophisticated consumer market. Based on this, we formulate the following proposition: The performance of an entrepreneur is not only affected positively by her own education level but in addition, also by the education level of the population. We test this proposition using an eight years (1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001) panel of labor market participants in the EU-15 countries from which we select individuals who have been observed as entrepreneurs. We find strong support for a positive relationship between enrolment rates in tertiary education in country j and year t and several measures of the performance of individual entrepreneurs in that same country and year, including survival and the prob...

Entrepreneurship and the determinants of firm survival within regions: human capital, growth motivation and locational conditions

“…This reduces the quality of latent entrepreneurs in the population and reduces the talent available for existing enterprises, limiting their likelihood of success (Millán et al 2014). …”

“…For example, the influences from the location may reduce competition and expose entrepreneurs to a culture where the acquisition of wealth and personal success are less important . Equally, locational factors in peripheral regions may be part of a process that leads to a depletion of human capital resources (Kaufmann and Malul 2015;Malul 2015), so that the average latent entrepreneur will be less well placed to exploit available opportunities (Millán et al 2014). …”

Debt Characteristics Knowledge of Entrepreneurs in the SME Sector of the Czech Republic

“…For example Rauch and Rijsdijk [30] and Millán et al [22] showed that higher education can positively influence business performance and according to Wang [36] it can improve management of financial risks.…”

Relación de Capacitación con Adopción de Internet y E-Commerce: Diferencias entre Microemprendedores de Chile

“…En al ámbito de estudio sobre incidencia de nivel de educación formal en emprendimiento, se ha reconocido que favorece la intención de emprender (Bae et al 2014), que existe vínculo de educación terciaria y emprendimiento de población en EEUU (Millan et al, 2014), también que un mayor nivel educacional incrementa las capacidades técnicas y habilidades del emprendedor (Gomezelj y Antončič, 2008), y que la educación formal previa, favorece los resultados del entrenamiento de emprendedores (Ashourizadeh et al, 2014). Respecto del tamaño de empresa, Kotey y Folker (2007) muestran que, en contexto de Pymes, las empresas más pequeñas, presenta menor propensión a la capacitación formal y que emprendimientos de menor tamaño se orientan hacia el aprendizaje informal.…”

“…UU. (Millan et al, 2014) e India (Rauth, 2014). Se estima que existe brecha de conocimiento de esta temática en Chile y Latinoamérica, y que no se ha estudiado con mayor profundidad, las implicancias de número de socios y fuente de financiamiento sobre resultados de capacitación.…”