Abstract

Little is known about the factors that drive a founder’s ability to generate employment for others. In this paper, we develop and test a theoretical framework to investigate the multi-level causal factors promoting job creation (that is, generating employment for individuals in addition to the founder) in start-up firms. In developing our framework, we consider the individual (human capital), organizational, and environmental factors that contribute to job creation in newly founded firms. We also examine how these factors differentially impact the creation of jobs that carry different benefits and promises of continued employment (and thus have a higher quality) relative to those that do not.

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