Fewer but Smarter? Human Capital, Finance, and Entrepreneurial Success
Event details
| Date | 27.05.2016 |
| Hour | 10:30 › 12:00 |
| Speaker | Vojislav MAKSIMOVIC (University of Maryland, Robert H School of Business) |
| Location | |
| Category | Conferences - Seminars |
Prior literature has identified a drop in the rate of US entrepreneurship. We show that this decline has been concentrated in large, high skilled entrants and examine its implications. Human capital in entrepreneurial firms is persistent and predicts both their future skill levels and future size. Local financial shocks predict the quantity and quality of entrants. Positive financial shocks favor the entry of more skilled firms. To the extent that there is relatively more high skilled entry, the decline in the rate of US entrepreneurship may not have as severe long run consequences as might first appear. More generally, initial differences in human capital are important determinants of firm quality and of firms’ growth trajectories.
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