Parental Business Exposure and Hybrid Entrepreneurial Entry: Evidence from an Emerging Economy

Sarah Watiri Muigai (), Edward Mungai and Ramakrishna S. Velamuri
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Sarah Watiri Muigai: Strathmore University Business School
Edward Mungai: Strathmore University Business School
Ramakrishna S. Velamuri: Mahindra University School of Management

A chapter in Rethinking Management and Economics in the New 20’s, 2023, pp 79-97 from Springer

Abstract: Abstract The study aimed at determining the effect of prior parental business exposure or PBE on hybrid entrepreneurial entry—an incremental form of entrepreneurial entry whereby the individual starts a business venture while still holding formal employment. Scholars have observed that this form of entry is on the rise due to disrupting factors in the current economic environment such as non-standard working hours, changes in career paths and the current COVID-19 Pandemic. The study further sought to establish the interaction effect of the period of formal employment on the association of PBE and hybrid entrepreneurial entry. A survey was administered to 440 next-generation family business owners and a probit model was used to examine the main and interaction effects. The results indicated that business households play a significant role in shaping hybrid entrepreneurial entry of the next-generation family business owners and this effect is further reinforced by the period of formal employment. Our study reinforces the key role played by family businesses in shaping entrepreneurial entry even when they may only be subsistence businesses without the objective of establishing entrepreneurial legacies across generations. Our study also offers practical guidance on the importance of work experience in shaping hybrid entrepreneurial entry as the longer the period of formal employment the more the individual is likely to transition into entrepreneurship through hybrid. It thus reinforces the prior notion that entrepreneurs are organizational products.

Keywords: Parental business exposure; Period of formal employment; Next-generation family members (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-19-8485-3_3

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DOI: 10.1007/978-981-19-8485-3_3

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