IS IT BOTH WHAT YOU KNOW AND WHO YOU KNOW? HUMAN CAPITAL, SOCIAL CAPITAL AND ENTREPRENEURIAL SUCCESS

Authors


Correspondence to: Ivar Kolstad, Chr. Michelsen Institute, P.O. Box 6033 Postterminalen, N-5892 Bergen, Norway.

E-mail: ivar.kolstad@cmi.no

Abstract

This paper analyses the importance of human and social capital for entrepreneurial success, using survey data of 459 urban entrepreneurs in Luanda, Angola. The paper offers four main findings: (i) an added year of schooling significantly increases entrepreneurial profits; (ii) different family background variables are associated with the educational attainment of men and women, indicating that educational attainment is gendered; (iii) profits are substantially lower for entrepreneurs suffering from chronic illness; and (iv) entrepreneurs who know a local police officer have higher profits, suggesting that specific forms of networks are related to entrepreneurial success. Copyright © 2013 John Wiley & Sons, Ltd.

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