Electronic copy available at: http://ssrn.com/abstract=1146742 Electronic copy available at: http://ssrn.com/abstract=1146742 STILL PLAYING THE GAME? Helle Neergaard 1 Aarhus School of Business Norris Krueger 2 Entrepreneurship Northwest Working Paper; also presented at RENT Conference 2005. Summary This paper arose from a study exploring the contribution of various forms of capital to the development of the entrepreneurial firm. It centres on the influence of human capital which constitutes the foundation of knowledge-based societies and bears on how entrepreneurs organize and manage new technology and knowledge-based ventures. It extends existing theory on human capital by suggesting that the choice of organizational and leadership practices are influenced by one important type of human capital: namely socialization from being trained to compete in sports involving such factors as physical strength, speed, endurance, a competitive mind, strategizing and team spirit; all ingredients necessary in building a new business. The paper is partly based on results from the SNE-project showing that entrepreneurs in new technology- and knowledge-based ventures rarely possess formal managerial training. This data is triangulated with new data gathered to elaborate and explain the results. Keywords: entrepreneurship, human capital, socialization, self-efficacy 1. Introduction A tally of venture capital firms in Silicon Valley reveals one striking characteristic: How many VC partners are avid athletes. Bill Gourley of Benchmark is a 6-foot-9 ex-basketball star; John Hummer of HummerWinblad is a 6-10 alumnus of the NBA (and his partner, Ann Winblad is the daughter of a top basketball coach). There is even a VC firm in Silicon Valley with its own indoor basketball court. Coincidence? Or a tantalizing hint about a potential marker of the kind of socialization that teaches critical attitudes and beliefs that are some of the key building blocks of entrepreneurial thinking? We may have learned that the notion of a fixed “entrepreneurial personality” is unlikely at best, but we have learned equally that entrepreneurs do think differently (Shaver & Scott 1991). At the same time, both scholars and practitioners appear to assume that much of these differences must arise from various processes of socialization that might explain, even predict, the base rate characteristics of aspiring entrepreneurs (Starr & Fondas, 1992). This paper seeks to fill that gap in understanding the origins of the entrepreneurial mindset. The analysis here rests on the assumption that entrepreneurial potential and practices can be brought about through experiential learning at earlier stages in life, and not exclusively through participation in entrepreneurship courses (Carland et al, 1989 based on Myers and Myers, 1980). In many instances what is needed are predisposing experiences that form an entrepreneurial mindset, part of which is contained in the notion of self-efficacy, which enhances an individual’s feeling of competence (Krueger and Brazeal, 1994). Research has suggested that growing up in a family business can do much to mould one’s entrepreneurial thinking (Krueger 1993). However, one powerful socializing force that 1 Helle Neergaard, Associate Professor, Department of Management, The Aarhus School of Business, Haslegaardsvej 20, DK-8210 Aarhus V (Denmark); Tel: +45 8948 6607; email: hen@asb.dk 2 Norris Krueger, 1