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Do the human and social capital of startups matter for initial hiring decisions and survival? An empirical application to the Portuguese entrepreneurial ecosystem

In: Research Handbook on Entrepreneurial Ecosystems

Author

Listed:
  • Dina Pereira
  • João Leitão

Abstract

The development of complex networks of new initiatives focused on entrepreneurship and innovation is considered critical to ensuring competitive teams, startup survival and the growth of entrepreneurial ecosystems. This requires an in-depth understanding of the roles of founders’ human capital (education, training and experience) and social capital (relationships) in influencing the composition and performance of startups established in the context of entrepreneurial ecosystems. This chapter examines the impact of startups’ human and social capital on initial hiring decisions and survival, indicating that higher levels of education and experience are critical for survival in science-based startups and specialised suppliers. Prior co-working experience and having worked in the same location are associated with a lower firm risk for science-based businesses. Taking as reference the entrepreneurial ecosystem framework, co-location, previous social relationships and networks all reduce firm hazard.

Suggested Citation

  • Dina Pereira & João Leitão, 2024. "Do the human and social capital of startups matter for initial hiring decisions and survival? An empirical application to the Portuguese entrepreneurial ecosystem," Chapters, in: James A. Cunningham & Matthias Menter & Conor O’Kane & Marco Romano (ed.), Research Handbook on Entrepreneurial Ecosystems, chapter 14, pages 294-318, Edward Elgar Publishing.
  • Handle: RePEc:elg:eechap:20352_14
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    File URL: https://www.elgaronline.com/doi/10.4337/9781800378988.00022
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