Many Roads Lead to Rome:
How Human, Social, and
Financial Capital Are
Related to New
Venture Survival
Christian Linder
1
, Christian Lechner
2
, and Frank Pelzel
3
Abstract
Given variance in entrepreneurs’ capital endowments, the question of sufficient (or insufficient)
starting conditions enabling a pathway to survival is critical in entrepreneurship. Drawing on the
subjectivist theory of entrepreneurship (STE), we adopt a configurational approach. Our results
show how combinations of human and social capital are related to survival while overreliance
on financial capital is not. From a subjectivist perspective, we reveal a potential gap between
identifying and exploiting an opportunity. The findings provide some novel insights that help
reframe conflicting results as to whether capital endowments are substitutes or complements.
Keywords
subjectivist theory of entrepreneurship, subjectivism, survival, configurational analysis, human
capital, social capital, financial capital
There might be a large gap between seeing (an opportunity) and acting (on an opportunity). The
subjectivist theory of entrepreneurship (STE) understands entrepreneurial behavior as a function
of differences in knowledge, resources, opportunity costs, and expectations between founders
(Kor, Mahoney, & Michael, 2007). STE argues that a founder will detect and act on opportunities
in a subjective way (Shepherd, McMullen, & Jennings, 2007). Therefore, individuals create
firms because they subjectively detect an opportunity from a resource point of view and subjec-
tively consider the opportunity to be a good fit for themselves. The founder’s personality, human
capital (HC), mindset, and judgment all lead to the discovery or framing of an opportunity (Foss,
Klein, Kor, & Mahoney, 2008) and, subsequently, to the conviction of having identified an
opportunity that is specific to that person (first-person opportunity; Shepherd et al., 2007).
1
Department of Management, ESCP Europe Business School, London, UK
2
Faculty of Economics and Management, Free University of Bolzano, Bolzano, Italy
3
Institute for Employment Research, German Federal Employment Agency, Nuremberg, Germany
Corresponding Author:
Christian Linder, ESCP Europe Business School, London Campus, 527 Finchley Road, London, Hampstead NW3 7BG,
UK.
Email: chlinder@escpeurope.eu
Article
Entrepreneurship Theory and Practice
00(0) 1–24
© The Author(s) 2019
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DOI: 10.1177/1042258719867558
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