PARENTAL AND GENDER INFLUENCES ON

ENTREPRENEURIAL INTENTIONS, MOTIVATIONS AND ATTITUDES

Catherine Ashley-Cotleur
Frostburg State University
20 Public Square
Hagerstown, Maryland 21740
301-733-7024
ccotleur@myactv.net

Sandra King
California State Polytechnic University, Pomona

George Solomon
George Washington University

ABSTRACT

335 business students were surveyed on: intention to start a business, reasons for starting a
business, defining business success, and the importance of business plans and mentors.
Comparisons were made on the basis of gender and parental influences. Results confirm that (1)
males are more likely to intend to start a business and to view monetary rewards as valuable, (2)
females value more intrinsic rewards, such as meaning and purpose in their lives, and (3)
children of entrepreneurs are more likely to start businesses. Additional findings indicate that
children of business owners place more importance on business plans and mentors.
 INTRODUCTION

The link between new venture creation and a robust economy has led to the study of business
start-up issues such as entrepreneurial personalities and motivations, forces influencing
entrepreneurial behavior and processes driving business creations. This study addresses a
number of those issues, including intentions, motivations, how individuals view success in the
business world, and the importance of business plans and mentors. These issues were evaluated
on the basis of respondent gender and whether the individuals’ parents owned or had previously
owned a business. These questions were addressed through a survey of 335 graduate and
undergraduate business students at two U.S. universities.

LITERATURE REVIEW

Entrepreneurial Process

A number of authors (Shaver et al, 200l; Krueger and Brazeal, 1994; Bird, 1988) argue that the
entrepreneurial process is a planned and purposive act. These conclusions are based on several
models. Fishbein and Ajzen’s (1975) theory of reasoned action says that behavior is directly
influenced by one’s intention to engage in that behavior, and that intentions are influenced by
attitudes towards the behavior. Ajzen’s (1991) theory of planned behavior identifies the
behavior’s feasibility as an additional reason individuals form intentions to perform certain
behaviors. Bandura’s ((1986) theory of self-efficacy similarly argues that behavior is dependent
upon an individual’s perception that s/he can actually carry out the intended action.

If entrepreneurial activity is intentional, and attitudes and self-efficacy influence intentions, then
the question arises as to what influences these three variables. These influences can be thought of
as being personal to the individual (personality and characteristics) or environmental (Shaver et
al, 2001). This paper will only address individual influences.

Individual Factors

There are a number of individual factors that impact a person’s decision to become an
entrepreneur. These can generally be categorized as (1) demographic variables or (2) attitudes,
values or psychological factors.

Two key demographic variables that influence entrepreneurship activities are gender and family
background. A number of studies have found that men are more likely than women to express
an intention or preference for starting their own businesses (Scherer et al., 1989; Matthews and
Moser, 1995; Crant, 1996). However, intentions aside, the growth in female-founded businesses
has been significant, with “women starting businesses at three times the rate of men,” accounting
for “over 70 percent of all new businesses” (Hisrich and Peters, 2002).
Being raised in a family that is entrepreneurial significantly impacts individuals’ intentions to
start their own businesses (Crant, 1996; Matthews and Moser, 1995; Scherer, et al., 1989). This
tends to be particularly true for males (Matthews and Moser, 1995).

Having role models is a significant factor in wanting to start a business (Scheinberg and
MacMillan,1988; Birley and Westhead,1994), and self employed parents tend to be especially
relevant as mentors and guides for children starting their own businesses (Matthews and Moser,
1995; Scherer et al., 1989).

An entrepreneur’s attitudes and values also impact his or her motivations to be self-employed.
Some describe their entrepreneurial motivations in terms of making a difference in their
communities, taking care of their families, and making money (Scheinberg and MacMillan,
1988; Gatewood et al., 1995: Naffziger, 1994;). While making money can be a motivator,
studies have shown that entrepreneurs place more value on the ability to control one’s future and
engage in interesting and meaningful work than they do on financial gain (O.Connell, 2001;
Lowe and Schellenbert, 2002).

Personal values and behavior motivators can be thought of as either intrinsic or extrinsic to the
individual. Extrinsic motivators for a nascent entrepreneur will include expected monetary
rewards reflected in salary and benefits. Intrinsic rewards will “center around the satisfaction of
being one’s own boss, being more in control of your own destiny, and having ultimate
responsibility for the success of the venture” (Naffziger, 1994). Research indicates that potential
women entrepreneurs tend to value intrinsic factors more heavily than men do, with men placing
more of a value on receiving a high salary (Gatewood et al. 1995; Brenner and Tomkiewicz,
1979).

PURPOSE

The purpose of this study is to determine the influence of gender and parental background on a
potential entrepreneur’s intentions, motivations and attitudes related to starting a new business.

DATA COLLECTION AND METHODOLOGY

Sample

The researchers administered a questionnaire to 335 graduate and undergraduate business

students enrolled in two U.S. universities. The distribution of the sample in the two areas of
interest, gender and parental ownership of a business, are as follows:

Males: 175 (53%)

Females: 153 (47%)
Parents had or currently own a business: 130 (40%)
Parents had never owned a business: 198 (60%)
Measures

Eight questions were asked relating to the objectives of this study. Six of the questions were used
to determine students attitudes and values related to starting a business, defining success in the
business world, and the importance of business plans and mentors to their entrepreneurial
intentions. Two demographic questions determined the respondents’ gender and parental
background.

ANALYSIS OF DATA

The data were analyzed by examining the two independent variables, gender and parental
ownership of a business, and determining their influence on the dependent variables related to
intentions, motivations, and attitudes.

I. Gender (Independent Variable)

Research Question 1: Is there a difference between the gender of the respondent and
their intention to start their own business?

The authors chose cross tabulations to measure the variance between the two populations. The
results of the analysis indicated that males were more likely to indicate an intention to start a
business than females at the .078 level of significance (Pearsons Chi-Square).

Research Question 2: Is there a difference between the gender of the respondent and
their reasons for starting their own business?

The authors chose a two-tailed t-test to measure the variance among the multiple reasons for
starting a business. Of the seven possible reasons to start a business, the only choice that had any
level of significance was “to make more money,” (.041), which males ranked as more important
than females.

Research Question 3: Is there a difference between the gender of the respondent and
their definition of success in business?

The authors chose a two-tailed t-test to measure the variance among the multiple reasons for
selecting definitions for success in business. Of the seven possible reasons to start a business,
only two choices, “successfully completing projects,” (.01), and “having a job that gives
meaning and purpose to my life,” (.02), had any level of significance between the two genders.
In fact, in both cases, females selected both choices higher or attributed greater meaning than
their male counterparts did.

Research Question 4: Is there a difference between the gender of the respondent and
how important is it for them to learn how to develop a business
plan?
The authors chose both a two-tailed t-test and cross tabulations to analyze this research question.
The results of both analyses were not significant. Thus, the authors conclude that gender cannot
be determined to have an influence on respondents’ feelings about the significance of business
plans in the entrepreneurial process.

Research Question 5: Is there a difference between the gender of the respondent and
how important is it for them to have a mentor or guide help
them with their desire to start their own business?

The authors chose both a two-tailed t-test and cross tabulations to analyze this research question.
The results of both analyses were not significant. Thus, the research question was not proven.

In summary, three of the five research questions dealing with the independent variable of the
gender of the respondent were determined to be significant and the remaining two research
questions were not determined to be significant. We next examine the independent variable,
parental ownership of a business, and its influence on the various dependent variables dealing
with intentions, motivations and entrepreneurial activity in our survey.

II. Parents Currently or Previously Owned a Small Business (Independent Variable)

Research Question 1: Is there a difference between whether the parents of the

respondent currently or previously owned a small business and
their intention to start their own business?

The authors chose cross tabulations to measure the variance between the two populations. The
results of the analysis indicated that those respondents whose parents currently or previously
owned a business were more likely to start businesses than those respondents whose parents had
never started a business at the .042 level of significance (Pearsons Chi-Square).

Research Question 2: Is there a difference between whether the parents of the

respondent currently or previously owned a small business and
their reasons for starting their own business?

The authors chose a two-tailed t-test to measure the variance among the multiple reasons for
starting a business. Of the seven possible reasons to start a business, the only choice that had any
level of significance was “to be more independent,” (.091), with those respondents whose parents
currently or previously owned a business indicating this was an important reason for them to
start their own business.

Research Question 3: Is there a difference between whether the parents of the

respondent currently or previously owned a small business and
their definition of success in business?

The authors chose both a two-tailed t-test and cross tabulations to analyze this research question.
The results of both analyses were not significant. Thus, the research question was not proven.
Research Question 4: Is there a difference between whether the parents of the
respondent currently or previously owned a small business and
how important is it for them to learn how to develop a business
plan?

The authors chose cross tabulations to measure the variance between the two populations. The
results of the analysis indicated that those respondents whose parents currently or previously
owned a business rated the importance of a business plan higher than those respondents whose
parents had never started a business at the .04 level of significance (Pearsons Chi-Square).

Research Question 5: Is there a difference between whether the parents of the

respondent currently or previously owned a small business and
how important is it for them to have a mentor or guide help
them with their desire to start their own business?

The authors chose cross tabulations to measure the variance between the two populations. The
results of the analysis indicated that those respondents whose parents currently or previously
owned a business rated the importance of a mentor higher than those respondents whose parents
had never started a business at the .000 level of significance (Pearsons Chi-Square).

CONCLUSIONS

The results of this survey confirmed previous research studies in several areas, specifically (1)
the importance of gender on intentions to start a business and what is valued by entrepreneurs
and (2) the importance of family background on business start up intentions.

Intriguing results from this study show that children of entrepreneurs are significantly more
likely to see the value of a business plan and a mentor in the entrepreneurial process and to value
independence as a reason for starting a business.

These results raise some interesting issues regarding the influences of social factors such as
family background on potential entrepreneurs. Future research in this area should explore more
fully what it means to be the child of an entrepreneur. While numerous research studies show a
relationship between intentions to start a business and being raised in an entrepreneurial family,
there is not a great deal of research that goes beyond this association to ask what drives the
relationship. It would be valuable to determine whether the importance children of entrepreneurs
place on business plans and mentors reflects parental attitudes, parental behaviors, or the impact
of negative or positive outcomes associated with using or failing to use these two elements. The
answer to this question could help determine future activities and programs addressed at
fostering new venture development in the society at large.
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