Entrepreneurial potential: The role of human and cultural capitals

Abstract

Empirical evidence for links between human capital and entrepreneurship potential is equivocal despite a wide range of studies. This research draws on prospective longitudinal data from the National Child Development Study (NCDS) to offer new theoretical perspectives and empirical evidence on the human capital predictors that drive entrepreneurship. The results suggest that start-up is more likely for those who demonstrate higher levels of analytical and creative abilities in childhood, benefit from a supportive family background, invest in their human capital through diverse and longer work experience and have accrued a solid basic education, albeit not strongly credentialed. This article contributes to a better understanding of human capital acquisition during the unfolding entrepreneurial life-course. Mediators and moderators of the relationship between education, human capital and entrepreneurship are also identified by accentuating the importance of family processes. In doing so, this study bridges the human capital and cultural capital literatures that have tended to evolve on separate tracks.