For Better or for Worse?—Nonprofit Experience and the Performance of Nascent Entrepreneurs

In the present study, we provide important insights into the knowledge and experience individuals gain when engaging in nonprofit and voluntary work. The article explores how applicable the acquired human capital is when put to work in environments that share some common elements. Using data from the second panel study of entrepreneurial dynamics (PSED 2), we find robust evidence that previous nonprofit experience significantly increases the chances to successfully found a new venture. Given the similarities in work environments that are plagued by uncertainty and ambiguity, the task-relatedness of human capital acquired through nonprofit work might provide a comparative advantage when creating a new venture. Practical implications and future research are discussed.