Abstract
Entrepreneurship research highlights the importance of human capital for processes entrepreneurial entry and exit, but few studies investigate how human capital affects both processes. Real Options theory suggests that entry and exit are associated with options to defer investments and options to grow, but evidence is limited to industries or firms. A longitudinal study of 14,150 individual entrepreneurs reveals that specific human capital in the form of entrepreneurial experience is a strong predictor of both entry and exit from a new venture. Further, industry-level uncertainty exhibits curvilinear effects on entry, indicating that entrepreneurs are motivated by growth options that at some level become more valuable than options to defer. The study highlights that entrepreneurship is a set of skills that can be learned through practical experience. We outline implications for entrepreneurship theory and entrepreneurship education.