Pablo Hernandez-Lagos Archives

Entrepreneur’s Knowledge, Firm Survival, and the Normalized Burn Rate

We study the association of spending per employee with startup firm survival. Our theory model posits that entrepreneur’s knowledge defines the complex decision process of combining human and non-human inputs to increase firm value. …Read More

How a Startup’s ‘Burn Rate’ Influences Its Success

Two people in conversation, one in a light-colored suit and the other in a white shirt, against a dark background.

A critical factor that determines whether a startup succeeds or fails is its level of spending, or burn rate. Research from professors Ron Berman and Pablo Hernandez-Lagos examines how an entrepreneur’s education and experience levels can predict a startup’s burn rate, and thus its odds of success.…Read More