Title: Financial education of founders, is it important? A case study of Jacobs Startup Competition

Authors: Andreas Seebeck; Robin M. Wolter

Addresses: Euro-FH University of Applied Sciences, Doberaner Weg 20, 22143, Hamburg, Germany ' Jacobs University Bremen, Campus Ring 1, 28759, Bremen, Germany

Abstract: This paper examines the effect of founders' financial education on the quality of financial information provided to investors as well as on the perceived capabilities of the founding team. The examinations are based on a unique sample of 130 international student-run start-ups. This paper finds that founding teams with at least one member having a financial education background provide more useful and specific, however less readable financial information in their business plans. The results suggest that investors regard founding teams comprised of at least one team member with financial education as more capable and competent. This effect stems from investors' screening of team members' biographic information rather than from indirect effects resulting from higher quality financial reporting in business plans. The findings contribute to the existing entrepreneurship education literature by providing empirical evidence that accounting and finance courses should be core elements of entrepreneurship curricula.

Keywords: financial education; entrepreneurship education; start-up competition; business plan; founding team; textual analysis.

DOI: 10.1504/IJEV.2022.122018

International Journal of Entrepreneurial Venturing, 2022 Vol.14 No.1, pp.122 - 143

Published online: 07 Apr 2022 *