Much has been written about the importance of the entrepreneur’s access to financial capital, as well as educational achievement, to the ultimate success of his or her enterprise. But an often overlooked aspect of success is the family background of the entrepreneur. The children of business owners are two to three times more likely to own businesses than those whose parents don’t own a business.
Clearly, business ownership runs in the family. But does it lead to success? When entrepreneurs work in a family business before starting their own, their businesses are 10 to 40 percent more successful than they would be otherwise. Informal learning and apprenticeship that occurs while working in a family business gives valuable experience for the would-be-entrepreneur. Working in family business provides an excellent way to learn the “nuts and bolts” of running a business—who better to learn from than your parents?
I came across this article on the website of The Journal of the American Enterprise Institute and thought it was good food for thought…
Click here to read the full article. Do you agree?