Is it both what you know and who you know? Human capital, social capital and entrepreneurial success

This paper analyzes the importance of human and social capital for entrepreneurial success, using survey data of 459 urban entrepreneurs in Luanda, Angola. The paper offers four main findings: i) An added year of schooling significantly increases entrepreneurial profits. ii) Profits are substantially lower for entrepreneurs suffering from chronic illness. iii) Entrepreneurs who know a local police officer have higher profits, suggesting that specific forms of networks are related to entrepreneurial success. iv) Different family background variables are associated with the educational attainment of men and women, indicating that educational attainment is gendered.