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Parental Self-Employment, Start-Up Activities And Funding: Exploring Intergenerational Effects

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  • ANAT BARNIR

    (Department of Management, University of North Texas, 1155 Union Circle # 305429, Denton, TX 76203-5017, USA)

  • ERIN MCLAUGHLIN

    (Department of Management, School of Business and Entrepreneurship, Nova Southeastern University, USA)

Abstract

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 start-up activities associated with planning and 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 relationship 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 with use of external informal funding. The results of our findings and their implications are discussed.

Suggested Citation

  • Anat Barnir & Erin Mclaughlin, 2011. "Parental Self-Employment, Start-Up Activities And Funding: Exploring Intergenerational Effects," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 371-392.
    • Handle: RePEc:wsi:jdexxx:v:16:y:2011:i:03:n:s1084946711001884
    DOI: 10.1142/S1084946711001884
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    References listed on IDEAS

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    1. Reynolds, Paul D. & Curtin, Richard T., 2008. "Business Creation in the United States: Panel Study of Entrepreneurial Dynamics II Initial Assessment," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 4(3), pages 155-307, January.
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    1. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    2. Alexander Roth & Ivana Blažková, 2023. "Does parental socio-economic status matter for the success of start-ups of first-time founders? Evidence from Germany," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 25(1), pages 66-82, June.
    3. Manolova, T. & Shirokova, G. & Tsukanova, T. & Edelman, L., 2014. "The impact of family support on young nascent entrepreneurs's start-up activities: A family embeddedness perspective," Working Papers 6381, Graduate School of Management, St. Petersburg State University.
    4. Edelman, Linda F. & Manolova, Tatiana & Shirokova, Galina & Tsukanova, Tatyana, 2016. "The impact of family support on young entrepreneurs' start-up activities," Journal of Business Venturing, Elsevier, vol. 31(4), pages 428-448.
    5. Conen, Wieteke & Schippers, Johannes Jan & Schulze Buschoff, Karin, 2016. "Self-employed without personnel between freedom and insecurity," WSI Studies 05, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.

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