Surviving start-ups: the importance of entrepreneurial capital

Abstract

This paper constructs a theoretical framework that explains how exposure to entrepreneurial activities impacts start-ups’ survival. First, this study examines the effects of entrepreneurial capital (EC) – inherited entrepreneurial practices from parents as a result of the exposure to entrepreneurial activities, on the survival of start-ups. Second, it examines the effects of EC across firm types (family and non-family firm) and regions (smaller and larger region). Using a sample of start-ups in 2002 in Sweden, we found first that EC influences the survival of start-ups, especially start-ups in smaller regions. Further, we found that EC conditions the survival of family start-ups. This paper adds to the literature by opening the discussions on the survival of start-ups and EC. We provide policy implications thereafter.

Keywords

• start-up
• entrepreneurship
• entrepreneurial capital
• survival
• region