Family Business and Habitual Entrepreneurship : Differences and Similarities

Abstract

This study examines the prevalence of different types of entrepreneurs in the context of family business. In previous studies the family entrepreneurs have been seen loyal to their original firm, whereas relinquishing a firm is substantially connected to the habitual entrepreneurs. It may be one reason why these entrepreneurial dimensions have not been largely connected in previous studies. However, this does not mean that habitual entrepreneurship would not exist in family business. Thus the aim of this study is to explore the connections between habitual entrepreneurship and family business by examining, firstly, how many family entrepreneurs there are among portfolio, serial and first-time entrepreneurs, and secondly, what kinds of similarities and differences there are between habitual entrepreneurship and family business (e.g. personal background factors and businesses). The final sampling size was 245 small firms and a total of 119 firms took part in the research (i.e. over 48 per cent). The data was analysed by using chi-square test, t-test and analysis of variance. The research revealed that there were more family entrepreneurs among portfolio entrepreneurs than among the other types of entrepreneurs. Compared to the non-family firms, there were fewer owners in the family firms and the owners had also lower educational qualifications. However, family firms reached greater sales growth than their counterparts. Interestingly, statistically significant differences in the educational background of the portfolio, serial and first-time entrepreneurs or the characteristics of their ventures were not found.