Household and entrepreneurial entry: an individual entrepreneurial capital perspective

Abstract

Purpose

How does the family influence individual entrepreneurial entry? The literature does not provide a satisfactory answer. In this paper, we develop an individual entrepreneurial capital perspective to systematically evaluate the impact of current households on entrepreneurship at both theoretical and empirical levels.

Design/methodology/approach

Based on the Global Entrepreneurship Monitor (GEM) database from 2010 to 2018, we used logit regression models to examine the relationship between household size and opportunity- and necessity-motivated entrepreneurship.

Findings

The empirical results show that with the expansion of household size, the possibility of opportunity-motivated entrepreneurship shows a trend that first declines and then rises, and the possibility of necessity-motivated entrepreneurship shows an upward trend, suggesting that there are two types of opposing mechanisms that affect the relationship between household and entrepreneurial entry.

Practical implications

Family households are the starting point of individual growth and provide initial cognitive and social resources for decision-making. For entrepreneurs, it is necessary to make full use of household-based capital and networks to promote entrepreneurial activities. For the government, it is necessary to explore the development and implementation of household-based entrepreneurial policies.

Originality/value

Through analyses of the U-shaped relationship between household size and opportunity-motivated entrepreneurship and the positive relationship with necessity-motivated entrepreneurship, we reveal the relationship between household and entrepreneurship, reconcile the contradictions in the literature and contribute to the two fields of family studies and entrepreneurship.

Citation

Huang, Y., Wu, S., Chen, C. and Zou, C. (2024), "Household and entrepreneurial entry: an individual entrepreneurial capital perspective", Baltic Journal of Management, Vol. 19 No. 2, pp. 253-269. https://doi.org/10.1108/BJM-08-2023-0319