Parental Self-Employment, Startup Activities and Funding: Exploring Intergenerational Effects
Vol. Volume 16 Number 3 September/2011
In this paper we compare first generation entrepreneurs with entrepreneurs whose parents were self-employed. To test the hypotheses, we use PSED II data on nascent entrepreneurs to explore the effects of parental self-employment (PSE) on various startup activities associated with planning an organization, and on funding structure. Overall, results show a difference in patterns of behavior between first generation entrepreneurs and entrepreneurs whose parents were self employed, supporting the notion of intergenerational learning. Specifically, results indicate a positive relationship between PSE and early deployment of startup activities and a positive relations between PSE and attaining informal external funding. Post hoc analyses for gender differences show that a) the relationship between PSE and startup activities exists primarily for men and b) gender differences exist in the effects of PSE on funding structure: for women, PSE is positively associated with the use of personal savings, whereas for men, PSE is positively associated iwth use of external informal funding. The results of our finding adn their implications are discussed.
Nascent entrepreneurs, parental employment, gender, startup activities, funding