The origins of entrepreneurship: How parental role models and socialization shape later entrepreneurial intentions

This exploratory study examines the effects of parental socialization and parental role models at ages 7 to 10 on the entrepreneurial intentions of their children in adolescence. Analysis of German household data and more than 1,400 observations shows a moderation effect between parental role models and socialization. An adolescent's willingness to become self-employed in the future is influenced by parental role models and moderated by parental child-rearing practices related to risk-taking during childhood. While child-rearing practices not focused on risk-avoidance reinforce the parental role model effect and increase an adolescent's intentions to become self-employed, parental child-rearing practices geared toward risk aversion nullify any positive effects of having self-employed parents as role models. Parental socialization during childhood thus casts a long-term shadow and may explain why some children with self-employed parents have as little intention of becoming self-employed as children of employees. Early parental socialization practices may, thus, contribute to explaining the lack of willing entrepreneurs and family business successors.