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Household and entrepreneurial entry: an individual entrepreneurial capital perspective

Yongchun Huang (Business School, Hohai University, Nanjing, China) (Institute of Social Sciences, Hohai University, Nanjing, China)
Shangshuo Wu (Business School, Hohai University, Nanjing, China)
Chengmeng Chen (Business School, Hohai University, Nanjing, China)
Chen Zou (Business School, Hohai University, Nanjing, China)

Baltic Journal of Management

ISSN: 1746-5265

Article publication date: 6 February 2024

Issue publication date: 6 May 2024

122

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.

Keywords

Acknowledgements

We thank the editor and two anonymous referees for their insightful and developmental comments on earlier drafts of the paper. The research was supported by the National Social Science Fund of China (21BGL016), the Major Project of Philosophy and Social Science Research in Jiangsu (2021SJZDA027) and the Fundamental Research Funds for the Central Universities (B220207037).

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

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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