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The
Igniting the entrepreneurial entrepreneurial
spirit: is the role parents play spirit
gendered?
39
Jodyanne Kirkwood
Department of Management, University of Otago, Dunedin, New Zealand Received 26 September 2005
Revised 11 January 2006
Accepted 9 June 2006
Abstract
Purpose The family has the potential to be a breeding ground for entrepreneurs and may be key
place where the entrepreneurial spirit is ignited. However, to date there has been little empirical
research on how parents may influence their childrens subsequent decision to start a new venture.
Design/methodology/approach This study adopts a qualitative approach to investigate, via
in-depth semi-structured interviews, the experiences of 50 entrepreneurs (25 men and 25 women).
Findings Parents influenced participants decision to create a new venture in a number of ways and
two key gender differences were noted in this parental influence. The first related to how the
participants were influenced differently by their mothers and fathers, with fathers playing the primary
role in the new venture creation decision. The second was differences between how the women and
men participants described the ways they were influenced by their parents. Many women
entrepreneurs looked to their parents for advice, support and encouragement, while some men desired
independence from their parents (primarily fathers) or were trying to compete with them.
Research limitations/implications Limitations exist due to the sample size and the complexity
of motivations for starting a new venture. This study should be followed by more extensive research,
addressing the further research questions and directions that are posed.
Originality/value This empirical study contributes to the literature by enhancing our limited
understanding of how parents influence the decision to start a new venture.
Keywords Family, Parents, Gender, Motivation (psychology)
Paper type Research paper
Introduction
It was recently contended that the family is the oxygen that feeds the fire of
entrepreneurship (Rogoff and Heck, 2003, p. 559). The influence of the family on the
new venture creation process has received limited attention as researchers have not
yet focused their attention on how a new venture might spring from family
relationships (Aldrich and Cliff, 2003, p. 577). While studies have certainly not ignored
the family, as the literature reviewed in this paper will highlight, others believe that the
family is rarely mentioned in entrepreneurship research (Ahl, 2003). Where this
criticism stems from is that the family is seldom discussed from sociological
perspectives that consider how the social environment affects entrepreneurs (Hurley,
1999). This has been referred to as a family embeddedness perspective where people
International Journal of
are part of networks of social relations and do not decide to start a business in a Entrepreneurial Behaviour &
vacuum (Aldrich and Cliff, 2003, p. 577). This study aims to go some way towards Research
Vol. 13 No. 1, 2007
filling this gap by focusing specifically on the role of parents on the new venture pp. 39-59
creation decision. The objective of this paper is to explore how parents influence the q Emerald Group Publishing Limited
1355-2554
new venture creation process, with a particular focus on understanding any gender DOI 10.1108/13552550710725174
IJEBR differences between the influence of mothers and fathers, and also between the
13,1 experiences of the women and men participants.
Defining what we understand by the family and entrepreneurs are important tasks
to undertake at the outset. Although defining the family is not straightforward, for the
purposes of this study, the following definition is employed: the family is based on
kinship, marriage and parenthood (Young, 1992). This is the most useful definition
40 given the focus of this study is on the role of parents in the new venture creation
decision. Others researching the family and entrepreneurship have used broader
definitions, such as the household (a residential unit) (Ram, 2001; Young, 1992) or the
extended family that is often the focus of family business studies (Kuratko, 1993).
Definitions of entrepreneurs and entrepreneurship have also been wide-ranging but
have primarily focused around three main areas; risk taking (Long, 1983, Stewart et al.,
1996), founding a business (Brockhaus, 1987, Gartner, 1990), and innovation (Carland
et al., 1984, Drucker, 1985, Gartner, 1990, Schumpeter, 1934). While the term
entrepreneur is used throughout this paper for the purposes of consistency it should be
noted that other studies use various definitions of entrepreneurs. This is often a
problem in entrepreneurship studies and there is little that can be done to avoid this
weakness other than to note there may be a lack of direct comparability between
studies due to differences in definitions (Carland et al., 1988). In the current study a
definition of an entrepreneur is used which focuses on creating a new venture. Thus, it
is a person (or a group of people) who creates a new business (for profit) and employs at
least one other paid employee. Further rationale for this definition is presented in the
methodology section.
There have been a number of strands of research within the entrepreneurship field
that discuss the family. While these are not central to the purposes of this study a brief
overview of their focus is important as context to this paper. The first and most
prevalent discussion has been with respect to family businesses (for a recent review,
see Zahra and Sharma, 2004). Within this field, there have been a wide range of studies
including those focusing on business aspirations and goals of family members (Basu,
2004; Tagiuri and Davis, 1992), leadership (Wah, 2004), gender dynamics (Alcorso,
1993) and ethnic family businesses (McGoldrick and Troast, 1993). A further approach
has been to study the demographics of entrepreneurs families and attempt to suggest
causality between family background and entrepreneurship. This strand of research
has been aimed at exploring demographics such as birth order or the social class of the
family (Belcourt, 1987; Hisrich and Brush, 1985). Many of these studies have concluded
the percentage of entrepreneurs who have parents (mainly fathers) who are (or had
been) entrepreneurs is higher than that of the general population (Bird, 1993; Buttner,
1993). Emerging from the observations in these studies there is evidence to suggest
that there is an increased likelihood of an individual becoming interested in
entrepreneurship if there is a family background in business ownership (Mallette and
McGuinness, 1999; Matthews and Moser, 1996; Morrisson, 2000). Thus, the literature
certainly suggests that the family can act as an incubator or is an antecedent to
entrepreneurship (Aldrich and Cliff, 2003; Belcourt, 1988). While there is an absence of
research focusing specifically on the role of the family in terms of venture creation
there is research on the motivation for becoming an entrepreneur (one of which is
family-related motivators) and this literature, focusing on gender comparisons, is
discussed below.
Motivations for becoming an entrepreneur The
The decision to become an entrepreneur is often a complex and multi-faceted entrepreneurial
phenomenon (Marlow and Strange, 1994; Shane et al., 1991; Stevenson, 1990) and has
been the focus of many studies over time (see, for example Hamilton, 1987; Mazzarol spirit
et al., 1999; McClelland and Swail, 2005; Segal et al., 2005; Stanworth and Curran, 1973).
The four most common factors are a desire for independence and autonomy, monetary
motivations, factors related to work, and factors related to the family. 41
A desire for independence and autonomy is often cited as the number one
motivating factor for becoming an entrepreneur (Harrison and Hart, 1993; McDowell,
1995; Shane et al., 1991; Vivarelli, 1991). Few gender differences have been found in
relation to independence as a motivator (Pinfold, 2001; Scott, 1986; Still and Soutar,
2001; Sundin and Holmquist, 1991). Therefore, independence appears to be a universal
motivator for both women and men in deciding to become entrepreneurs. Of the studies
that report gender differences, the degree and direction of gender differences are
inconsistent. This was evidenced in the some cases where women were more motivated
by independence than men (Pinfold, 2001; Scott, 1986; Still and Soutar, 2001), while
other cases found the opposite trend, with male entrepreneurs being more motivated by
independence than women (Marlow, 1997; Sundin and Holmquist, 1991).
It is often assumed that entrepreneurs are highly motivated by money. However,
research has found that entrepreneurs are not always primarily motivated by money
and it is often less important than other factors (Fox, 1998; Kuratko et al., 1997;
McDowell, 1995; Vivarelli, 1991; Watson et al., 2000). Statistically significant gender
differences have been found in some cases (Borooah et al., 1997; DeMartino and
Barbato, 2003; Fischer et al., 1993; Marlow, 1997; Scott, 1986). Similar to findings for
independence-related motivators, where gender differences were found the difference
varied. In some studies, men were more likely than women to report making money or
financial reward as a motivation (Borooah et al., 1997; Cromie, 1987; DeMartino and
Barbato, 2003; Marlow, 1997). Alternatively, Scott (1986) found that women were more
motivated to make more money than men.
Motivations that emerged from experiences at work were also an important
consideration to many entrepreneurs. Two distinct categories of work-related
motivation were found in the literature; those regarding a particular job or employer
and broader career or employment level factors. First, at an individual job level, factors
such as job satisfaction (Honig-Haftel and Marin, 1986), job dissatisfaction (Cromie,
1987), or job instability (Borooah et al., 1997) do motivate people to leave paid
employment and become entrepreneurs. On a higher level than an individual job are
career and employment issues such as career flexibility, advancement and co-career
issues (DeMartino and Barbato, 2003), dissatisfaction with ones career (Cromie, 1987;
Marlow, 1997), difficulty finding employment (Fox, 1998; Hakim, 1989) and
redundancy (Marlow, 1997). Gender differences with respect to work-related
motivating factors were relatively limited across the studies analysed. DeMartino
and Barbato (2003) found women were more motivated than men by co-career issues
and career flexibility. The opposite trend existed for advancement where significantly
more men were motivated by this factor than women (DeMartino and Barbato, 2003).
Borooah et al. (1997) also found statistically significant gender differences in
redundancy and unemployment where more men were motivated by this factor than
women. As per the previous categories of motivators (independence and monetary
IJEBR motivators), the direction of gender differences differed and there were sometimes
13,1 contradictory results. As an example, Cromie (1987) also found career dissatisfaction
to be more important to women than men. However, in the same study no gender
differences were found in job dissatisfaction.
For independence and work-related factors the balance of these studies is largely
against gender differences. For monetary motivations, the balance is somewhat more
42 even. Only in family-related factors do the majority of studies find significant
differences between the motivations of men and women entrepreneurs. There are two
distinct family-related types of motivations for starting a new venture. The first gender
differences relate to issues such as continuing a family tradition (Shane et al., 1991) and
following a role model (Pinfold, 2001). In both cases, men expressed a greater desire
than women to continue a family tradition or to follow a role model (Pinfold, 2001;
Shane et al., 1991). However, following a role model is not necessarily specific to the
family but it is included because the possibility arises that this role model may have
been a family member. The second, and most prevalent family-related motivation,
relates to the combining of waged and domestic labour (Marlow, 1997; Shane et al.,
1991; Still and Soutar, 2001), family-related reasons (Sundin and Holmquist, 1991),
family policies and family obligations (DeMartino and Barbato, 2003), fit with domestic
commitments (Greenfield and Nayak, 1992), and child-rearing (Cromie, 1987). Unlike
other motivations where some gender differences emerged but the direction of results
differed, all of these studies found that women were more motivated by these
family-related factors than men. However, not all of these results are specifically
applicable to the purposes of this study because they primarily refer to managing
children and a partner in parallel with entrepreneurship, and do not describe the
parental influence in the new venture creation decision.
Methodology
As noted in the introduction, an entrepreneur is defined in this study as someone who
starts a new business venture. An entrepreneur is therefore a person (or a group of
people) who creates a new business (for profit) and employs at least one other paid
person. The rationale for this definition relates to varying levels of risk required in each
of the different ownership scenarios. People who have founded their own business and
are responsible for employees have significantly more at stake than sole traders for
example. In support of this distinction between founding a new venture and other
forms of ownership Gartner (1990) found purchasing an existing business to be one of
the lowest scoring factors in a Delphi study exploring definitions of an entrepreneur.
Thus, the definition used in the current study excludes those who purchased an
existing business, franchisees, or sole traders. It must be noted that it excludes those
who have inherited a business from their parents but includes entrepreneurs who may
have started a new venture with a family member (in this study, none had started
businesses with parents but some had done so with siblings).
Because this studys intention was to investigate how participants believed their
parents influenced their new venture creation decision a qualitative research method
was deemed most appropriate. Some support the use of qualitative approaches when
researching the family and its role in entrepreneurship (Aldrich and Cliff, 2003; Ram,
2001) and note that they are especially useful within entrepreneurship research areas
that are not well advanced theoretically (Paulin et al., 1982). There are various methods
for collecting qualitative data but interviews, in their various forms, are the most
widely used method (Fontana and Frey, 1994; King, 1994). For the purposes of this
research interviews were the best option to understand the reality of entrepreneurs
themselves. The choice of semi-structured interviews is also justified given the limited
amount of the prior research on the family and entrepreneurship. In addition, the
IJEBR complex decision to become an entrepreneur lends itself to interviews which allow for
13,1 full expression of the interrelationships between the many variables that can impact
on one persons ultimate decision to start a business (Stevenson, 1990, p. 442).
The sample
This paper reports on the qualitative phase of a multiple method study. The
44 quantitative phase of the study involved a mail survey of 932 business owners in New
Zealand (66 were returned undeliverable). The 381 replies received represented a 44 per
cent response rate that is respectable given that response rates for small business mail
surveys average around 30 per cent (Dennis, 2003). Of these respondents, 289 met the
definition of an entrepreneur used in this study. Individuals who started their
businesses after 1993 were chosen to maximise recall of their motivations for starting a
new venture. The retrospective nature of this study parallels similar research on
entrepreneurs (Carter and Cannon, 1992). In such cases, researchers often only have
retrospective accounts and there are potential issues with accuracy of recall (Mangione,
1995; Reynolds, 1993). It is expected that the memory of events occurring earlier than
1993 may be difficult to recall although similar research by Hamilton (1987) suggests
that relying on the recall of founders from 10-15 years prior was a weakness of his
study but not a major defect.
A total of 159 of the 289 respondents indicated (from a question on the survey) they
would like to participate further in the study by way of a face-to-face interview or be
sent another survey in the future. Self-selection bias must be considered a potential
weakness of the sample selection method but given the lack of publicly available
databases of business owners in New Zealand this method was somewhat unavoidable.
Because significantly more people self-selected than could be interviewed a selection
process ensued that was based on minimising travel expenses. A total of 50
entrepreneurs in New Zealand were interviewed (25 women and 25 men) in phase two
of the study. All participants were interviewed face-to-face by the author. While the
sample was not matched in a statistical sense care was taken to ensure that mens
and womens businesses were broadly comparable in terms of three demographics:
industry sector, annual sales volume and employee numbers. Table I shows an
overview of these and other sample demographics as well as the location of the
interviews.
The questions were designed to gauge individual opinions and therefore were broad
and open-ended (see appendix for questions relating to the family). The interviews
ranged from 45 minutes to over three hours, although the entire interview was not
focused on the role of parents in the new venture creation process. Most interviews
lasted approximately 90 minutes and all were tape recorded and transcribed. While
tape recorders can be considered intrusive to a research setting (Stainback and
Stainback, 1988) they are essential for providing a record of the interview and, more
importantly, are necessary for coding the interview material (Curran and Blackburn,
2001).
The QSR NUD *IST Vivo (Nvivo) software package was used for data management
(Richards, 2000). Using Nvivo, transcripts were coded according to themes and
analysed using a constant comparison approach (Glaser, 1992). Data were coded by
paragraph and sentence as proposed by Strauss and Corbin (1990), and the entire
document viewed to see if (and how) it differed from the previous transcript. Code notes
The
Women n 25 Men n 25
entrepreneurial
Ethnic origin spirit
Pakeha/European 23 23
Maori 1 1
Other 1 1
45
Age
Under 35 3 0
35-39 6 5
40-44 3 6
45-49 5 5
50 8 9
Industry
Service 15 13
Manufacturing 3 4
Retail 1 1
Other 2 5
More than one type (i.e. service and manufacturing) 4 2
Employees: (mean)
Part time 4 1.6
Full time 5 6.1
Location
Auckland 17 10
Wellington 4 4
Christchurch 2 9
Dunedin 1 2 Table I.
Invercargill 1 0 Sample demographics
were written from the open coding procedure and these were initial thoughts about
themes and possible relationships or issues that appeared important to the
participants. Analysis began by coding the transcripts and from this categories
emerged (nodes in Nvivo). A total of 2,184 passages were coded into the 38 node
categories where a passage may be a few words or a number of paragraphs of text.
Findings
Table II illustrates some information about the participants and their families. It
indicates that parents were described by 26 of the 50 participants as important in their
decision to start a new venture (16 women and ten men). These participants were
primarily those with parents who also had owned businesses (13 women and eight
men). Thus, it can be suggested that parents who owned businesses certainly may
have played a role in their childrens decision to become an entrepreneur. In a further
support of this observation, it was found that of the participants who said they were
not influenced by their parents the majority had never owned a business (only five had
owned a business). This parallels the results of prior literature where a family history
of business ownership is linked to the incidence of entrepreneurship. However, while
these demographics indicate a link between these two factors we know little about the
nature of this influence.
The objective of this section is to move beyond these basic observations and
describe, in as much detail as possible how parents were seen by the participants as
influencing their decision to start a new venture. As noted, 16 women and ten men
participants said they were in some way influenced by their parents in this decision.
Women n 25 Men n 25
Influence of mother
As can be seen from the previous discussion, the primary influencer on the
participants motivations for starting a new venture was fathers. As a contrast, this
discussion focuses on excerpts that talk of mothers. The following women illustrate the
differences between their mothers and fathers. Only one woman directly said her
mother influenced her:
My mother particularly [influenced me]. My father for the work ethic . . . Whilst I get a lot of
the business side from my father, my personality, thank god, comes from my mother. Hes too
aggressive, too assertive (W18).
This excerpt from W18 shows the distinction that she made between her personality
and her business side, and she clearly splits the influences into two distinct areas.
She did not want to inherit what she saw as aggressive aspects of her fathers
personality. While this quote shows that there was some influence from her mother, The
other women seemed not to view their mothers so positively: entrepreneurial
I had a fantastic father, my mother was alright, but my father was particularly fantastic. He spirit
had a degree and he believes strongly in education for everyone, even though I am of an era
where some people thought girls should go and be nurses and things (W13).
This participant considered her father to be fantastic, while her mother was alright. 51
She recognised that her father was particularly forward thinking for the time (she is
aged over 55). Another theme emerged from participant W5, who described her mother
as having the ability to be entrepreneurial:
I guess my mother if she didnt have six children, she might have, she would have had
the ability [to be an entrepreneur] . . . She was probably a bit entrepreneurial. She run a
little business from home when we were children (W5).
This excerpt is particularly interesting as this womans mother did in fact have a
business but was clearly not recognised by the participant as being important. In this
case, it may imply that women with large families and being an entrepreneur are
mutually exclusive. The experiences of the men participants who mentioned their
mothers were remarkably similar to the womens accounts. Again, there were no cases
of men participants saying they were specifically influenced by their mothers in the
new venture creation decision. One male entrepreneur, who singled out his father in
earlier quotes as being the key parental role model in his entrepreneurial career, talked
of his mother:
My mother was a great mother. She was. She didnt have a great role in . . . my thought
processes, but my father did (M20).
Here, this participant appeared to focus on the traditional roles of parents, where
mothers were seen as having responsibilities for caring for the family. There was also
some discussion of mothers potentially being seen as an anti-role model, and this seems
to be implied by M2:
My father was a Doctor, my mother didnt bother working, she didnt need to. She played
ladies (M2).
As noted in these excerpts, no participants specifically talked of how they considered
their mothers as important influencers in their decision to start a new venture. The age
of the participants in this study will have influenced some of these findings, where
traditional gendered roles may have been more strongly evident than they are today. It
appears that both women and men participants were equally uninfluenced by their
mothers in relation to the new venture creation decision. Interestingly, even in
examples where the mother and father owned and worked in a business together (such
as a farm), fathers were still described as playing the major influencing role in their
new venture creation decision. The literature suggested that mothers may play a larger
role in their childrens early socialisation than fathers, but the experiences across the
range of participants shows the influence of their mothers was recalled as relatively
limited in any capacity.
IJEBR Discussion
13,1 As can be seen from these findings, an entrepreneurs upbringing appears to be the
seedbed from which the decision to start a new venture emerges. Clearly, the decision
to start a new venture is complicated and multi-faceted but the findings show that
parents appear to be a strong influencing factor. However, this is not to suggest that
the role parents play in this process is the only factor involved. As noted in the
52 literature review, there are often many complex and intertwining motivations for
creating a new venture, and the family is only one possible consideration.
The findings show that parents are a source of inspiration for many participants in
their decisions to start new ventures. They lend weight to suggestions that norms,
attitudes, and values within the family may impact the new venture creation decision
(Aldrich and Cliff, 2003). Most of the participants who said they were influenced by
their parents grew up within a family where entrepreneurship was present (as was the
case for 13 women and 8 men). A family background of owning businesses gave many
of the participants an early view of doing things differently than children whose
parents did not have their own businesses. Their upbringing in an environment where
dinner conversation revolved around parents businesses appears to have been a
contributing factor in the new venture creation decision.
Fathers were discussed as being influential in the participants decision to start a
new venture. Mothers, on the other hand seemed to not have been influential in this
decision. Thus, gender differences were noted with respect to the greater influence
participants described their fathers as having in their new venture creation decision.
This finding is possibly not surprising given that for this sample, it would have been
uncommon when they were growing up for mothers to have businesses of their own.
Therefore, the majority of the business experience they were exposed to would have
come from their fathers. This balance is likely to change over time due to womens
increased participation in the workforce and particularly, as a result of more women
having entrepreneurial experience. In the future, mothers may be more influential in
their childrens subsequent decision to start a new venture.
For some of the women participants, their parents were a source of inspiration and
they learnt valuable lessons from their childhood experiences of their parents owning
businesses. Some women discussed their fathers in relation to learning from them
(what to do, what not to do), being inspired by them and being concerned about them.
While fewer men participants were motivated to start a new venture by their parents,
some of their accounts differed from the women participants. It was observed that for
some men participants appeared to desire to be different from or better than their
father and referred to an apparent desire to be independent from their fathers.