IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v11y2021i4p152-d701401.html
   My bibliography  Save this article

The Impact of Cultural Capital on Development of Entrepreneurship in Wales

Author

Listed:
  • Balaussa Azubayeva

    (Economics and Business Department, Swansea University, Swansea SA1 8EN, UK)

Abstract

The focus of this paper is the impact of parental cultural capital on offspring’s occupational choice in relation to entrepreneurship. Despite growing interest to cultural motives for entrepreneurship on an individual level, few studies link these two domains empirically. This study follows the Culture Based Development research paradigm (CBD) developed by Tubadji and explores how culture influences occupational choices of school graduates during school-to-work transition. The main hypothesis of this paper is that sons of entrepreneurs are more likely to choose transitions into entrepreneurship after graduating school. I test three hypotheses on a unique historic dataset from Wales, UK, employing Probit analysis. I found a significant correlation between entrepreneurial background of father and son’s entrepreneurial entry. Poor socio-economic status of a father is also a predictor of entry into entrepreneurship of their son, motivated by necessity. The findings of this research contributed to the applicability of CBD to a historic dataset of earlier periods to capture a significant cultural impact on entrepreneurship development in Wales, UK.

Suggested Citation

  • Balaussa Azubayeva, 2021. "The Impact of Cultural Capital on Development of Entrepreneurship in Wales," Administrative Sciences, MDPI, vol. 11(4), pages 1-24, December.
  • Handle: RePEc:gam:jadmsc:v:11:y:2021:i:4:p:152-:d:701401
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/11/4/152/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2076-3387/11/4/152/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michael Fritsch & David J. Storey, 2014. "Entrepreneurship in a Regional Context: Historical Roots, Recent Developments and Future Challenges," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 939-954, June.
    2. Verner, Dorte & Alda, Erik, 2004. "Youth at risk, social exclusion, and intergenerational poverty dynamics : A new survey instrument with application to Brazil," Policy Research Working Paper Series 3296, The World Bank.
    3. Jere R. Behrman & Whitney Schott & Subha Mani & Benjamin T. Crookston & Kirk Dearden & Le Thuc Duc & Lia C. H. Fernald & Aryeh D. Stein, 2017. "Intergenerational Transmission of Poverty and Inequality: Parental Resources and Schooling Attainment and Children’s Human Capital in Ethiopia, India, Peru, and Vietnam," Economic Development and Cultural Change, University of Chicago Press, vol. 65(4), pages 657-697.
    4. David Kalisz & Francesco Schiavone & Giorgia Rivieccio & Céline Viala & Junsong Chen, 2021. "Analyzing the macro-level determinants of user entrepreneurship : The moderating role of the national culture," Post-Print hal-03188229, HAL.
    5. Michael Fritsch & Michael Wyrwich, 2017. "The effect of entrepreneurship on economic development—an empirical analysis using regional entrepreneurship culture," Journal of Economic Geography, Oxford University Press, vol. 17(1), pages 157-189.
    6. David Kalisz & Francesco Schiavone & Giorgia Rivieccio & Céline Viala & Junsong Chen, 2021. "Analyzing the macro-level determinants of user entrepreneurship. The moderating role of the national culture," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 33(3-4), pages 185-207, March.
    7. Carr, Jon C. & Sequeira, Jennifer M., 2007. "Prior family business exposure as intergenerational influence and entrepreneurial intent: A Theory of Planned Behavior approach," Journal of Business Research, Elsevier, vol. 60(10), pages 1090-1098, October.
    8. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
    9. Nicoletti Cheti & Ermisch John F, 2008. "Intergenerational Earnings Mobility: Changes across Cohorts in Britain," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-38, January.
    10. Annie Tubadji, 2012. "Culture‐based development: empirical evidence for Germany," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(9), pages 690-703, July.
    11. Bonnett, Celia & Furnham, Adrian, 1991. "Who wants to be an entrepreneur? A study of adolescents interested in a Young Enterprise scheme," Journal of Economic Psychology, Elsevier, vol. 12(3), pages 465-478, September.
    12. Roberto PATUELLI & Enrico SANTARELLI & Annie TUBADJI, 2020. "Entrepreneurial intention among high-school students: the importance of parents, peers and neighbors," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 225-251, June.
    13. Anonymous, 2014. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 9(1), pages 1-2, May.
    14. Corcoran, Mary & Jencks, Christopher & Olneck, Michael, 1976. "The Effects of Family Background on Earnings," American Economic Review, American Economic Association, vol. 66(2), pages 430-435, May.
    15. Michael Fritsch & Martin Obschonka & Michael Wyrwich, 2018. "Historical Roots of Entrepreneurial Culture and Innovation Activity?An Analysis for German Regions," Papers in Evolutionary Economic Geography (PEEG) 1824, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2018.
    16. Ni Qin & Dongmin Kong, 2021. "Human Capital and Entrepreneurship," Journal of Human Capital, University of Chicago Press, vol. 15(4), pages 513-553.
    17. Claudia Olivetti & M. Daniele Paserman, 2015. "In the Name of the Son (and the Daughter): Intergenerational Mobility in the United States, 1850-1940," American Economic Review, American Economic Association, vol. 105(8), pages 2695-2724, August.
    18. Annie Tubadji, 2014. "Was Weber right? The cultural capital root of socio-economic growth examined in five European countries," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(1/2), pages 56-88, May.
    19. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    20. Bach Nguyen & Nguyen Phuc Canh & Su Dinh Thanh, 2021. "Institutions, Human Capital and Entrepreneurship Density," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1270-1293, September.
    21. Annie Tubadji, 2020. "Value-Free Analysis of Values: A Culture-Based Development Approach," Sustainability, MDPI, vol. 12(22), pages 1-17, November.
    22. Hanqing “Chevy†Fang & James J. Chrisman & Daniel T. Holt, 2021. "Strategic Persistence in Family Business," Entrepreneurship Theory and Practice, , vol. 45(4), pages 931-950, July.
    23. Alberto Alesina & Paola Giuliano, 2015. "Culture and Institutions," Journal of Economic Literature, American Economic Association, vol. 53(4), pages 898-944, December.
    24. Robert Huggins & Piers Thompson, 2020. "Human agency, entrepreneurship and regional development: a behavioural perspective on economic evolution and innovative transformation," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(7-8), pages 573-589, August.
    25. Michael Fritsch & Michael Wyrwich, 2018. "Regional knowledge, entrepreneurial culture, and innovative start-ups over time and space―an empirical investigation," Small Business Economics, Springer, vol. 51(2), pages 337-353, August.
    26. Annie Tubadji & Peter Nijkamp, 2015. "Cultural Gravity Effects among Migrants: A Comparative Analysis of the EU15," Economic Geography, Taylor & Francis Journals, vol. 91(3), pages 343-380, July.
    27. Sander Wennekers & André Stel & Roy Thurik & Paul Reynolds, 2008. "Nascent entrepreneurship and the level of economic development," Small Business Economics, Springer, vol. 30(3), pages 325-325, March.
    28. Cristina Cruz & Mattias Nordqvist, 2012. "Entrepreneurial orientation in family firms: a generational perspective," Small Business Economics, Springer, vol. 38(1), pages 33-49, January.
    29. Anders Hoffmann & Martin Junge & Nikolaj Malchow-Møller, 2015. "Running in the family: parental role models in entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 79-104, January.
    30. Thai, Mai Thi Thanh & Turkina, Ekaterina, 2014. "Macro-level determinants of formal entrepreneurship versus informal entrepreneurship," Journal of Business Venturing, Elsevier, vol. 29(4), pages 490-510.
    31. Dunn, Thomas & Holtz-Eakin, Douglas, 2000. "Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 282-305, April.
    32. Thompson Piers & Jones-Evans Dylan & Kwong Caleb, 2012. "Entrepreneurship in Deprived Urban Communities: The Case of Wales," Entrepreneurship Research Journal, De Gruyter, vol. 2(1), pages 1-33, January.
    33. Editors, 2014. "International Journal of Systems Science," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(12), pages 1-1, December.
    34. Peter Zwan & Roy Thurik & Ingrid Verheul & Jolanda Hessels, 2016. "Factors influencing the entrepreneurial engagement of opportunity and necessity entrepreneurs," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 273-295, December.
    35. Nicolaou, Nicos & Shane, Scott, 2010. "Entrepreneurship and occupational choice: Genetic and environmental influences," Journal of Economic Behavior & Organization, Elsevier, vol. 76(1), pages 3-14, October.
    36. Wim Naudé, 2007. "Peace, Prosperity, and Pro-Growth Entrepreneurship," WIDER Working Paper Series DP2007-02, World Institute for Development Economic Research (UNU-WIDER).
    37. Marcus Dejardin & Michael Fritsch, 2011. "Entrepreneurial dynamics and regional growth," Small Business Economics, Springer, vol. 36(4), pages 377-382, May.
    38. Michael Hout & Harvey Rosen, 2000. "Self-Employment, Family Background, and Race," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 670-692.
    39. Anonymous, 2014. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 9(2), pages 109-110, August.
    40. Alina Sorgner & Michael Fritsch, 2018. "Entrepreneurial career paths: occupational context and the propensity to become self-employed," Small Business Economics, Springer, vol. 51(1), pages 129-152, June.
    41. Gregory Clark, 2015. "The Son Also Rises: Surnames and the History of Social Mobility," Economics Books, Princeton University Press, edition 1, volume 1, number 10181-2.
    42. Cardoso, Ana Rute & Verner, Dorte, 2006. "School Drop-Out and Push-Out Factors in Brazil: The Role of Early Parenthood, Child Labor, and Poverty," IZA Discussion Papers 2515, Institute of Labor Economics (IZA).
    43. Nicos Nicolaou & Scott Shane, 2010. "Entrepreneurship And Occupational Choice: Genetic And Environmental Influences," Post-Print hal-00856601, HAL.
    44. Michael Fritsch & Martin Obschonka & Michael Wyrwich, 2019. "Historical roots of entrepreneurship-facilitating culture and innovation activity: an analysis for German regions," Regional Studies, Taylor & Francis Journals, vol. 53(9), pages 1296-1307, September.
    45. Annie Tubadji & Peter Nijkamp, 2013. "Cultural Distance and Gravity Effects among Migrants," ERSA conference papers ersa13p484, European Regional Science Association.
    46. Chiara Peroni & Cesare A. F. Riillo & Francesco Sarracino, 2016. "Entrepreneurship and immigration: evidence from GEM Luxembourg," Small Business Economics, Springer, vol. 46(4), pages 639-656, April.
    47. Annie Tubadji & Masood Gheasi & Peter Nijkamp, 2017. "Immigrants’ socio-economic achievements and cultural diversity," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(5), pages 712-728, August.
    48. S. J. Drinkwater & N. C. O'Leary, 1997. "Unemployment in Wales: Does Language Matter?," Regional Studies, Taylor & Francis Journals, vol. 31(6), pages 583-591.
    49. Joern Block & Karsten Kohn & Danny Miller & Katrin Ullrich, 2015. "Necessity entrepreneurship and competitive strategy," Small Business Economics, Springer, vol. 44(1), pages 37-54, January.
    50. Michael Fritsch, 2008. "How does new business formation affect regional development? Introduction to the special issue," Small Business Economics, Springer, vol. 30(1), pages 1-14, January.
    51. Marianne Bertrand & Antoinette Schoar, 2006. "The Role of Family in Family Firms," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 73-96, Spring.
    52. Yue Dai, 2021. "A Behavioral Cultural-Based Development Analysis of Entrepreneurship in China," Administrative Sciences, MDPI, vol. 11(3), pages 1-16, September.
    53. Laté Ayao Lawson & Phu Nguyen-Van, 2021. "Institutions and Geography," Post-Print hal-03098071, HAL.
    54. Daniel Vaughan-Whitehead, 2014. "Introduction," Economia & lavoro, Carocci editore, issue 2, pages 5-8.
    55. Ramana Nanda & Jesper B. Sørensen, 2010. "Workplace Peers and Entrepreneurship," Management Science, INFORMS, vol. 56(7), pages 1116-1126, July.
    56. Davidsson, Per, 1991. "Continued entrepreneurship: Ability, need, and opportunity as determinants of small firm growth," Journal of Business Venturing, Elsevier, vol. 6(6), pages 405-429, November.
    57. Thomas Astebro & Irwin Bernhardt, 1999. "The Winner's Curse of Human Capital," Working Papers 99-5, Center for Economic Studies, U.S. Census Bureau.
    58. Raj V. Mahto & Jiun-Shiu Chen & William C. McDowell & Saurabh Ahluwalia, 2019. "Shared Identity, Family Influence, and the Transgenerational Intentions in Family Firms," Sustainability, MDPI, vol. 11(4), pages 1-15, February.
    59. Croce, Francesca, 2017. "Contextualized indigenous entrepreneurial models: A systematic review of indigenous entrepreneurship literature," Journal of Management & Organization, Cambridge University Press, vol. 23(6), pages 886-906, November.
    60. Thomas Åstbro & Irwin Bernhardt, 2005. "The Winner’s Curse of Human Capital," Small Business Economics, Springer, vol. 24(1), pages 63-78, February.
    61. Lorraine Uhlaner & Franz Kellermanns & Kimberly Eddleston & Frank Hoy, 2012. "The entrepreneuring family: a new paradigm for family business research," Small Business Economics, Springer, vol. 38(1), pages 1-11, January.
    62. Kearl, J R & Pope, Clayne L, 1986. "Unobservable Family and Individual Contributions to the Distributionsof Income and Wealth," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 48-79, July.
    63. Michael Wyrwich, 2015. "Entrepreneurship and the intergenerational transmission of values," Small Business Economics, Springer, vol. 45(1), pages 191-213, June.
    64. Lorraine Uhlaner & Franz Kellermanns & Kimberly Eddleston & Frank Hoy, 2012. "Erratum to: The entrepreneuring family: a new paradigm for family business research," Small Business Economics, Springer, vol. 38(1), pages 13-13, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soleimanof, Sohrab & Morris, Michael H. & Jang, Yongseok, 2021. "Following the footsteps that inspire: Parental passion, family communication, and children’s entrepreneurial attitudes," Journal of Business Research, Elsevier, vol. 128(C), pages 450-461.
    2. Murat Yalcintas & Oyk㜠Iyigãœn & Gokhan Karabulut, 2023. "Personal Characteristics And Intention For Entrepreneurship," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 68(02), pages 539-561.
    3. Roberto PATUELLI & Enrico SANTARELLI & Annie TUBADJI, 2020. "Entrepreneurial intention among high-school students: the importance of parents, peers and neighbors," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 225-251, June.
    4. Vladasel, Theodor & Lindquist, Matthew J. & Sol, Joeri & van Praag, Mirjam, 2021. "On the origins of entrepreneurship: Evidence from sibling correlations," Journal of Business Venturing, Elsevier, vol. 36(5).
    5. Kleinhempel, Johannes & Klasing, Mariko & Beugelsdijk, Sjoerd, 2022. "Cultural Roots of Entrepreneurship," MPRA Paper 115942, University Library of Munich, Germany.
    6. Peter van der Zwan & Ingrid Verheul & Roy Thurik & Isabel Grilo, 2009. "Entrepreneurial Progress: Climbing the Entrepreneurial Ladder in Europe and the US," Tinbergen Institute Discussion Papers 09-070/3, Tinbergen Institute, revised 17 Mar 2010.
    7. Giuseppe Criaco & Philipp Sieger & Karl Wennberg & Francesco Chirico & Tommaso Minola, 2017. "Parents’ performance in entrepreneurship as a “double-edged sword” for the intergenerational transmission of entrepreneurship," Small Business Economics, Springer, vol. 49(4), pages 841-864, December.
    8. Michael Fritsch & Martin Obschonka & Fabian Wahl & Michael Wyrwich, 2021. "Cultural Imprinting: Ancient Origins of Entrepreneurship and Innovation in Germany," Jena Economics Research Papers 2021-012, Friedrich-Schiller-University Jena.
    9. Patel, Pankaj C. & Wolfe, Marcus T. & Bailey, Ryan C., 2023. "You take after your father: Paternal grit and young adult self-employment," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    10. Tubadji, Annie & Nijkamp, Peter & Santarelli, Enrico, 2017. "Shacklean Uncertainty and Cultural Embeddedness as Innovation Constraints in the UK," GLO Discussion Paper Series 111, Global Labor Organization (GLO).
    11. Gutiérrez, Antonio & Velilla, Jorge, 2022. "La transmisión intergeneracional en el autoempleo: El efecto de la situación financiera familiar [The effect of family financial status on intergenerational transmission of self-employment]," MPRA Paper 113619, University Library of Munich, Germany.
    12. Annie Tubadji, 2021. "Culture and mental health resilience in times of COVID-19," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(4), pages 1219-1259, October.
    13. Alfredo Monte & Sara Moccia & Luca Pennacchio, 2022. "Regional entrepreneurship and innovation: historical roots and the impact on the growth of regions," Small Business Economics, Springer, vol. 58(1), pages 451-473, January.
    14. Laspita, Stavroula & Breugst, Nicola & Heblich, Stephan & Patzelt, Holger, 2012. "Intergenerational transmission of entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 27(4), pages 414-435.
    15. Annie Tubadji & Peter Nijkamp, 2018. "Revisiting the Balassa–Samuelson effect: International tourism and cultural proximity," Tourism Economics, , vol. 24(8), pages 915-944, December.
    16. Isabel Grilo & Roy Thurik, 2005. "Entrepreneurial engagement levels in the European Union," Papers on Entrepreneurship, Growth and Public Policy 2005-29, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    17. Guido Buenstorf & Kristian Nielsen & Bram Timmermans, 2017. "Steve Jobs or No Jobs? Entrepreneurial activity and performance among Danish college dropouts and graduates," Small Business Economics, Springer, vol. 48(1), pages 179-197, January.
    18. Annie Tubadji & Toby Denney & Don J. Webber, 2021. "Cultural relativity in consumers' rates of adoption of artificial intelligence," Economic Inquiry, Western Economic Association International, vol. 59(3), pages 1234-1251, July.
    19. Robert W. Fairlie & Alicia M. Robb, 2007. "Why Are Black-Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 25(2), pages 289-323.
    20. Matthew J. Lindquist & Joeri Sol & Mirjam Van Praag, 2015. "Why Do Entrepreneurial Parents Have Entrepreneurial Children?," Journal of Labor Economics, University of Chicago Press, vol. 33(2), pages 269-296.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:11:y:2021:i:4:p:152-:d:701401. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.