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The Impact of the Entrepreneur’s Educational Level on the Employment Creation by New Small and Medium Enterprises

The Impact of the Entrepreneur’s Educational Level on the Employment Creation by New Small and Medium Enterprises
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Author(s): João Zambujal-Oliveira (Instituto Superior Técnico, Universidade de Lisboa, Portugal) and Luis Contente (Instituto Superior Técnico, Universidade de Lisboa, Portugal)
Copyright: 2014
Pages: 18
Source title: Effective Human Resources Management in Small and Medium Enterprises: Global Perspectives
Source Author(s)/Editor(s): Carolina Machado (University of Minho, Portugal) and Pedro Melo (University of Minho, Portugal)
DOI: 10.4018/978-1-4666-4731-2.ch010

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Abstract

This chapter examines the effects of different types of start-up rates on subsequent employment change. Longitudinal data on start-ups and employment in Portuguese regions in the period 1996–2007 is used for the analysis. The study addresses whether diverse types of new small- and medium-sized enterprise formation have heterogeneous effects on regional employment generation. It is found that, for the range considered, the seven types of start-ups led to significant and negative effects on the average variation of regional employment. It is also observed that these effects were more negative for start-ups with at least one business owner with higher education in engineering and for start-ups with at least one business owner with higher education in management. The last conclusion is that the share of highly skilled employees has a statistically significant and positive impact on the average employment change and, therefore, on regional development.

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