Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

The impact of education, experience and inner circle advisors on SME performance: insights from a study of public development centers

Domingo Ribeiro Soriano and Gary J. Castrogiovanni
Small Business Economics
Vol. 38, No. 3, Entrepreneurial Activity in Non-Profit Organizations (April 2012), pp. 333-349
Published by: Springer
Stable URL: http://www.jstor.org/stable/41410022
Page Count: 17
  • Download ($43.95)
  • Cite this Item
The impact of education, experience and inner circle advisors on SME performance: insights from a study of public development centers
Preview not available

Abstract

In this study, we investigate the effects of entrepreneurial human capital on SME performance using data on 2,713 SMEs within the European Union. Performance was measured in two ways: profitability as ROA and productivity as revenue per employee. Results indicate that both profitability and productivity are positively related to industry-specific knowledge possessed by the CEO-owner prior to starting up the firm and the general business knowledge acquired once the firm is up and running. Experience as a result of having previously worked in a firm in the same industry before starting a business was related to productivity, but there is no relation with profitability. There is a link between performance and inclusion of other CEO-owners in the founder's inner circle of advisors. This relationship is positive when the advisor's venture has experienced failure and negative when the advisor's venture has been successful. We discuss the significance of these findings for research and practice.

Page Thumbnails

  • Thumbnail: Page 
[333]
    [333]
  • Thumbnail: Page 
334
    334
  • Thumbnail: Page 
335
    335
  • Thumbnail: Page 
336
    336
  • Thumbnail: Page 
337
    337
  • Thumbnail: Page 
338
    338
  • Thumbnail: Page 
339
    339
  • Thumbnail: Page 
340
    340
  • Thumbnail: Page 
341
    341
  • Thumbnail: Page 
342
    342
  • Thumbnail: Page 
343
    343
  • Thumbnail: Page 
344
    344
  • Thumbnail: Page 
345
    345
  • Thumbnail: Page 
346
    346
  • Thumbnail: Page 
347
    347
  • Thumbnail: Page 
348
    348
  • Thumbnail: Page 
349
    349