The Making of Entrepreneurial Human Capital: Origins and Development of Skill Variety

Abstract

What predicts entry into entrepreneurship? Using a longitudinal sample of 873 adolescents from Finland, we set up a path model investigating the effects of an early variety of interests and activities on the development of skill variety. This developmental approach takes into ac-count an entrepreneurial personality profile (Big Five), a “taste for variety” (proxied by open-ness), entrepreneurial parents and the impact of skill variety on entrepreneurial intentions. As expected entrepreneurial intentions were predicted by skill variety. Further findings of struc-tural equation modelling pointed to the importance of an early variety of interests and activi-ties as well as an entrepreneurial personality for the formation and development of skill varie-ty. A “taste for variety” affects skill variety via an early variety of interests and activities. The results confirm the relevance of a developmental life span approach in entrepreneurship, high-lighting the possibility to promote entrepreneurship via arousing broad interests early in life. Further implications arise for entrepreneurship education programs. The programs might be more effective for a participant with high innate abilities and personality traits that are condu-cive for entrepreneurial action.