Entrepreneur Background & Characteristic’s

Childhood Family Environment

Specific topics in the family environment of the entrepreneur while growing up include birth order,
parent's occupation and social status, and relationship with the parents. The impact of birth order
has had conflicting research results since Hennig and Jardim (1977) found that female executives
tend to be first born. Being first born or an only child is postulated to result in the child's receiving
special attention and, thereby, developing more self-confidence. In a national sample of 468 female
entrepreneurs, Hisrieh and Brush (1984) found 50% to be first born. However, in many studies of
male and female entrepreneurs the first-born effect has not been present (Bowen & Hisrich, 1986).
Because the relation to entrepreneurship has been only weakly demonstrated, further research on
the first-born syndrome is needed to determine if it really does have an effect on a person's
becoming an entrepreneur (Auster & Auster, 1981; Chusmin, 1983; Sexton & Kent, 1981). In
terms of the occupation of the entrepreneurs' parents, there is strong evidence that entrepreneurs
tend to have self-employed or entrepreneurial fathers. Female entrepreneurs are as likely to report
self-employed or entrepreneurial fathers as male entrepreneurs. The independent nature and
flexibility of self-employment exemplified by the father or mother is ingrained at an early age. As
one entrepreneur stated, "My father was so consumed by the venture he started and provided such
a strong example, it never occurred to me to go to work for anyone else." This feeling of
independence is & ten further enforced by the presence of an entrepreneurial mother. Although the
results are much less consistent, female entrepreneurs, at least, appear to have more than their share
of entrepreneurial mothers. Although there are no comparative studies of non-entrepreneurs, the
overall parental relationship appears to be a very important aspect of the childhood family
environment in establishing a person's desire for entrepreneurial activity. Parents who are
supportive and encourage independence, achievement, and responsibility appear to be very
important for female entrepreneurs (Hisrich & Brush, 1986). A national study of female
entrepreneurs indicated that they tend to grow up in middle- to upper-class environments in which
families are likely to be relatively child-centered and be similar to their fathers in personality
(Hisrich & Brush, 1984).
Entrepreneur In general

Male entrepreneur’s only

• Brockhaus (1982) cited four studies suggesting that entrepreneurs tend to have entrepreneurial
fathers.
• Brockhaus and Nord (1979) found that 31 St. Louis male entrepreneurs were no more likely
then male managers to have entrepreneurial fathers
• Cooper end Dunkalberg (1984) reported that 47.5% of 1,394 entrepreneurs had parents who
owned a business.
• Jacobowitz end Vidler (1983) found that 72% of midAtlantic state entrepreneurs had parents
or close relatives who were self-employed.
• Shapero and Sokol (1982) reported that 50% to 58% of company founders in the United States
had self-employed fathers (at a time when self-employed persons were only 12% of the work
force). They cited data on the same pattern in nine other cultures.

Studies of female entrepreneurs

• Hisrich and Brush (1983) reported a nationwide sample of 468 female entrepreneurs; 36% had
entrepreneurial fathers; 11% had entrepreneurial mothers
• Mescon and Stevens (1982) found that 53% of 108 Arizona real estate brokers had fathers who
were entrepreneurs. No mothers were entrepreneur.
• Sexton end Kent (1981) found that 40°/o of 48 Texas female entrepreneurs had entrepreneurial
fathers end 13% entrepreneurial mothers (vs. 13% and 11% for 45 female executives).
• Waddell (1983) found that 63.8% of 47 female entrepreneurs reported entrepreneurial fathers,
end 31.9% reported entrepreneurial mothers (vs. 42.5% end 8.5% for female managers er¢l
36.2% end 8.5% for secretaries).
• Watkins end Watkins (1983) found that 37% of 58 British female entrepreneurs had self-
employed fathers (self-employment in the male United Kingdom labor force is 9%). Sixteen
percent of mothers were whole or part owners of businesses (female self-employment was
4o/0).

Education
The education of the entrepreneur has received significant research attention. Education was
important in the upbringing of most entrepreneurs. Its importance is reflected not only in the level
of education obtained but also in the fact that it continues to play a major role as entrepreneurs try
to cope with problems and to correct deficiencies in business training. Although a formal education
is, of course, not necessary for starting a new business, as reflected in the success of such high
school dropouts as Andrew Carnegie, William Durant, Henry Ford, and William Lear, it does
provide a good background, particularly when it is related to the field of the venture. In terms of
type and quality of education, female entrepreneurs appear to experience some disadvantage.
Although nearly 70% of all female entrepreneurs have a college degree, many with graduate
degrees, the most popular college majors are English, psychology, education, and sociology, and
a few have degrees in engineering, science, or math (Hisrich & Brush, 1986). Both male and female
entrepreneurs have cited educational needs in the areas of finance, strategic planning, marketing
(particularly distribution), and management. Entrepreneurs informally have indicated the
importance of being able to deal with people and communicate clearly

Personal Values
Although there have been many studies to indicate that personal values are important for
entrepreneurs, frequently these studies fail to indicate that entrepreneurs can be differentiated on
these values from managers, unsuccessful entrepreneurs, or even the general population. For
example, whereas entrepreneurs appear to be effective leaders in that they are able to communicate
their vision for the company in such a way that others cooperate, the degree of this leadership has
not been thoroughly researched nor does the amount distinguish them from successful managers.
Although personal value scales for leadership as well as support, aggression, benevolence,
conformity, creativity, veracity, and resource-seeking are important for identifying entrepreneurs,
they frequently identify successful persons as well (Brockhaus & Horwitz, 1986). However,
studies have shown that the entrepreneur has a different set of attitudes about the nature of the
management process and business in general (Gasse, 1977). Indeed, the nature of the enterprise
and the opportunism, intuition, and individuality of the entrepreneur diverge significantly from the
bureaucratic organization and the planning, rationality, and predictability of its managers. Perhaps
all these traits are encompassed in a winning image that allows the entrepreneur to create and
nurture the new venture. In one study, winning emerged as the best term to describe companies
that have an excellent overall reputation ("To the Winners," 1986). Five consensus characteristics
of these companies were: superior quality in products; quality service to customers; flexibility, or
the ability to adapt to changes in the marketplace; high-caliber management; and honesty and
ethics in business practices. A successful entrepreneur is almost always characterized as a winner;
it is almost a prerequisite for them actually to become one ("To the Winners," 1986)

Age
The relation of age in the entrepreneurial career process has also been carefully researched
(Ronstadt, 1982, 1983). In evaluating these results, however, it is important to differentiate
between entrepreneurial age (the age of the entrepreneur reflected in the experience in the field of
the feature or being self-employed) and chronological age. As is discussed in the next section,
entrepreneurial experience is one of the best predictors of success particularly when the new
venture is in the same field as previous business experience. In terms of chronological age,
entrepreneurs initiate their entrepreneurial careers at a wide variety of ages. Although an average
age has little meaning, generally when appropriate training and preparation are present, earlier
starts in an entrepreneurial career are better than later ones. Also there are milestone years that
occur in approximate five-year intervals between 25 and 50 when a person is more inclined to start
an entrepreneurial career (Ronstadt, 1984). As one entrepreneur succinctly stated in one survey, "I
felt it was now or never in terms of starting a new venture when I approached 30." Generally male
entrepreneurs tend to start their first significant venture in their early 30s, whereas female
entrepreneurs tend to do this in their middle 30s.

Work History
Work history is not only a negative displacement (through lack of employment) in the decision to
launch a new entrepreneurial venture hut is also important in the growth and eventual success of
the new venture launched. Although dissatisfaction with various aspects of one's job--challenge,
promotional opportunities, frustration, and boredom--often motivates the launching of a new
venture, previous technical and industry experience is important once the decision to launch has
been made. Particularly important experience areas are: obtaining financing, such as bank
financing and venture capital; developing the best product or service for the market; establishing
manufacturing facilities; developing channels of distribution; and preparing the marketing plan for
market introduction. As the venture becomes established and starts growing, managerial
experience and skills become increasingly important. Although most ventures start with managing
one's own activities and those of a few part- or full-time employees, as the number of employees
increases along with the size, complexity, and geographical diversity of the business, managerial
skills come more and more into play. This is particularly true when the new venture requires the
presence of other managers. In addition to managerial experience, entrepreneurial experience is
important. It is generally easier to start a second, third, or fourth venture than it is to start the first
one. The need for entrepreneurial experience increases as the complexity of the venture increases.
Most entrepreneurs indicate that their most significant venture is not their first one (Hisrich &
Brush, 1986). Throughout their entrepreneurial careers entrepreneurs are exposed to more
corridors of new venture opportunities than workers in other career paths
Studys Finding comments
Brockhaus (1982) Reviewed four studies concluding that All samples were small and limited to
entrepreneurs tend to be better one geographical area or industry.
educated than the general
population, but less so than
managers

Cooper & Dunkelberg (1984) This was a national survey of 1,805

small business owners that showed
that a larger proportion of business
starters or purchasers (approximately
64%) have less than a college degree
compared to those who inherit or are
brought in to run the business (57%).

Jacobowltz & Vidler (1982)
Results of interviews with 430
entrepreneurs showed that they did
not prosper in schools; 30% were high
school dropouts. Only 11% graduated
from a four-year college.
The sample was composed of
Pennsylvania and New Jersey
entrepreneurs; 11% were female

Of the female entrepreneurs, 54.8% Of the female entrepreneurs, 54.8%

Humphreys & McClung (1981) were college graduates. This were college graduates. This
surpasses the rate for men and surpasses the rate for men and
women in general, and for male women in general, and for male
managers and administrators. managers and administrators.

Quoted 1977 Census Bureau study

Charboneau (1981 )
Sexton & Kent (1981)
showing that the average female Sample of 108 female real estate
entrepreneur is a college graduate. brokerage owners in Arizona.
Interviewed 93 women (48 female
Female entrepreneurs were slightly entrepreneurs) from Texas
less educated than female executives
(44% and 51% college graduates,
respectively). Younger female
entrepreneurs were better educated
than female executives of companies.