The objective of this study is to identify what elements of human capital determine entrepreneurial innovativeness and how the identified variables affect them individually regarding the intent to start own ventures. A total of eight interviews were conducted with a focus group and the individuals. The data was analyzed by coding method (Saldaña, 2015, p.54). It is the process of identifying thematic categories as they distinguish themselves throughout the transcripts to discover common patterns and relations.
In general overview, the following topics emerge from the analysis and coding of the data from the transcripts. The data elements of this study will be resilience, education, employee development, and government policies that promote entrepreneurship.
Resilience as an Entrepreneur
The first and foremost element outlined from the interviews was inherent resilience. Resilience as a data element is a dynamic adaptation process that allows entrepreneurs to create plans for the future despite hard market conditions and destabilizing events they must continually face (Ramirez-Faria, 2011, p.21). In this study, all the participants exhibit a high level of resilience and patience. As it was seen from the interviews, all the participants have experienced failed startups in the entrepreneurship efforts. Despite these failures, they did not stop but moved on and ultimately established their businesses. Particularly, Ramirez explained why his first venture failed, "I have experienced failed startups especially in my early years of entrepreneurship. My view is that they failed startups were not a success mainly due to my inability to correctly interpret the market and to face opportunities that were promising." As noted by Naudé (2010, p.6), external shocks do not have to scare an entrepreneur. It helps a person not to rely on good economic conditions since they are not everlasting (Ayala & Manzano, 2014, p.130). Therefore, inherent resilience is of crucial importance.
Experience and Knowledge
The second data element is experience and knowledge. The most successful entrepreneurs in the world left a college. From the interview with Orellana, it was seen that knowledge was also of great importance. As deduced from the respondents, it can be acquired through formal and informal education through experience. Most of the respondents finished a college and related their success to the understanding of business management through concepts learned in college. In addition, Tooner (2016) noted that the concepts in a university did not turn students into businessmen and women, but rather asserted that ideas formed the basis of human advancement.
The Right Employees
All the respondents ascertain the importance of having the right employees for the venture to be successful. Thus, this study suggests that entrepreneurs are keen to hire people with talents, have right human development policies and create favorable working conditions for their employees. Therefore, there is a direct correlation between the success of a venture and human resource. Managers must have knowledge of business management to be able to identify and mitigate risks and human skills as well as focus on training the employees to meet customer needs (Mayhew, 2016). Eventually, organization's success depends on the employees' performance since poor performance is detrimental to the company's success.
Entrepreneurship as an Economic Pillar
All the participants acknowledge that entrepreneurship is very important for the growth and development and majorly form the economic basis of many nations. According to Haber and Reichel (2007, p.125), entrepreneurship brings innovation and job creation in a country. Participants suggest that developing countries should promote entrepreneurship as economic development and patent rights legislations should be enacted to protect entrepreneurs. Indeed, policy makers have to promote and motivate entrepreneurs for great economic development (Audretsch, Belitski, & Desai, 2015, p.34). Therefore, entrepreneurship is considered to be an important economic pillar within ruled by governmental policies.
Conclusion
Most authors have concluded that there is a direct relationship between the Human capital and entrepreneurial success. Others argue that the relationship between human capital and entrepreneurial success is overemphasized. However, this research study shows there is a relationship between human capital and its variables and entrepreneurial success.
References
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Naudé, W. (2010). Entrepreneurship, developing countries, and development economics: new approaches and insights. Small business economics, vol.34, no.1: 1-12.
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