Factors Influencing the Establishment of Knowledge-Intensive Ventures

Purpose: The importance of entrepreneurial activities and the establishment of new ventures for economic growth and employment have long been recognized. However, the interactions of underlying mechanisms that influence this process have not been understood all that well. In the light of this, a deeper understanding of various mechanisms on which knowledge-intensive entrepreneurship hinges is needed. This paper investigates how the make-up of financial, human and social capital impacts on entrepreneurial action. Methodology: Based on a longitudinal study using both structured survey and in-depth interview techniques, this research addresses the role and importance of financial capital, human capital and social capital in the organizational genesis and early growth of entrepreneurial activities.Findings: Financial capital remains the most critical asset in the entrepreneurial process. However, possessing the right mixture of human and social capital is often a prerequisite for accessing the best capital sources as well as sufficient capital. The value of human and social capital, however, depends largely on the industry environment.Implications: The findings give weight and insight to the understanding that it is important for e.g. policy-makers to tailor support initiatives to specific industries