Drawing upon Human Capital Theory, the purpose of this study is to understand how education as a critical human capital influences starting or stopping a business. Besides, we investigate how gender and two countries’ context – Norway and China – may moderate the relationship between education and entrepreneurial intention or business discontinuance. Applying the data from Global Entrepreneurship Monitor (GEM) from 2012 to 2016, we find that education is a significant explanatory factor for intention to start a business or discontinue. As for gender, Norwegian and Chinese contexts moderate the effect of education on entrepreneurial intention, they do not influence the effect of education upon business discontinuance. The findings of this study bring significant contributions to theory and practice. It extends the application of the Human Capital Theory in business start and discontinuance and how it improves or inhibits the decision to start or stop business. Practically, it helps governments to devise programs for prolonging entrepreneurial business success in developing and developed countries.
- business discontinuance
- entrepreneurial intention