טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentVasershtayn Yana
SubjectHuman Capital Leading to Success of Israeli Startup - Second
Time is Better? What are the Key Learning Factors?
DepartmentDepartment of Industrial Engineering and Management
Supervisor Professor Emeritus Uzi De Haan
Full Thesis textFull thesis text - English Version


Abstract

I argue that human capital is the company’s biggest asset. Entrepreneurial human capital is not only something you born with, but it also can be learned and that the best way of learning entrepreneurship is by doing it.

In this research I have tested the influence of sociologic factor of previous founding experience on the success of entrepreneurship.

Substantial research has been done on impact of human capital and social capital factors on entrepreneurial attention and venture's success, there is little research available on the impact of previous start-up founding experience.

We believe that the second time entrepreneur has both, human capital and social capital, which will allow him to become more successful at creating a business.


The current research tests the hypothesis that entrepreneurship can be learned and to verify scientifically an assumption that is prevailing in a field, saying that second and third time founders are doing better than inexperienced ones. We wanted to see if Israeli entrepreneurs that have been established companies in the past have succeed better second time around. For this purpose the research concentrated on 1,766 founders that have established 1,668 companies, 428 of which have gone through successful exit between 1951 and May of 2007.

The research also took a close look at difference between industry sectors and its influence on the preferred type of exit - IPO or Acquisition.


The research shows that having previous founding experience increases the chances to establish a successful firm in the next time. 57 percent of the firms that had gone through successful exit had at least one founder with previous experience.


The research also acknowledges the impact of contribution of team.

New ventures with a founding team with at least one member with previous start up experience have higher chances of success than when founding team members have no previous start-up experience. 74 percent of the firms that had gone through successful exit and were established by a team of members that had at least one founder with previous experience.  


46 percent of the firms that had gone through successful exit had has chosen the type of the exit according to year in which they had exited. 70% of the firms that has gone through exit before the year 2000 turned to IPO. 70% of the firms that has gone through exit after the year 2000 turned to Acquisition.