Abstract
Given the contribution of Schumpeterian entrepreneurship to technological progress and well-being, the accuracy of investment decisions by venture capitalists is a societal issue. Venture capitalists find the human capital of entrepreneurs difficult to assess. This paper employs instrumental value theory to assess the impact of different human capital factors on the performance of new ventures. A meta-analysis of 29 previous empirical studies that examined the effect of founder's human capital on new venture performance suggested that instrumental value theory holds promise as a guide for research on entrepreneurs' human capital and new venture performance. It could also help venture capitalists to make better investment decisions, benefiting society in general.
| Original language | English |
|---|---|
| Pages (from-to) | 715-732 |
| Number of pages | 18 |
| Journal | Journal of Economic Issues |
| Volume | 43 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 1 Sep 2009 |
| Externally published | Yes |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth
Keywords
- Entrepreneurship
- Human capital
- Instrumental value theory
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