Lessons from entrepreneurial families

family businessesEntrepreneurs are made, not born. But it does help if your parents are small business owners as well. In an article in USA Today, several studies were conducted to understand the influence of family to entrepreneurs. Here are some points you need to check out:

“If you had a family member who started a business, you are more likely to become an entrepreneur than someone who didn’t,” says Vivek Wadhwa, founder of two technology companies, as well as a senior research associate at the Labor & Worklife Program at Harvard Law School and a co-author of the Kauffman study. “They provide inspiration, financing and they teach you the ropes.”

…While limited research has been done on the topic, a 2008 Journal of Business Venturing article says genes might influence the likelihood that some folks will follow the entrepreneurial paths other family members have taken. For instance, genes could predispose people to develop certain entrepreneur-friendly traits such as extroversion, say authors Nicos Nicolaou and Scott Shane.

…Non-entrepreneurial-minded families also may advocate the stability and benefits that often come with a corporate job’s health coverage, pension plans and 401(k) matches. Nearly three-quarters of company founders cited family or financial pressures to keep a traditional, steady job as issues that may prevent others from starting their own businesses, according to a November Kauffman report.

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