ENTREPRENEURIAL HUMAN-CAPITAL AND THE LONG-RUN SURVIVAL OF FIRMS IN INDIA

This paper analyses the characteristics of entrepreneurs that contribu te to firms' survival in less-developed countries (LDCs). The study, w hich relies on data collected in a 1971 survey of entrepreneurs in Sou th India and a follow-up survey of surviving firms in 1993, finds that entrepreneurial human capital greatly influences firm survival. The r esults indicate that firms founded by older entrepreneurs in higher ca stes are most likely to survive, but that increased education of the f ounding entrepreneur reduces survival. These results provide evidence that opportunities of entrepreneurs outside the firm, ignored in most theories, are important in firm survival. Copyright (C) 1996 Elsevier Science Ltd