Entrepreneurship and job-relatedness of human capital

This paper proposes a theory according to which entrepreneurial ability to deal with the adoption of new technology is a key determinant of value creation in entrepreneurship. In a single conceptual framework, we demonstrate that a bimodal pattern of entrepreneurial entry emerges: both individuals possessing high job-related human capital and individuals with low job-related human capital enter entrepreneurship. Our empirical analysis, using information from the Scientists and Engineers Statistical Data System, shows that entrepreneurial earnings crucially depend on the level of job-related human capital.