Role of the Family in Fostering Student's Entrepreneurial Intention

*Moindi Rose Meroka*

#### **Abstract**

Entrepreneurship has been viewed as solution to the global unemployment challenges facing youths. It is on this backdrop that this field has drawn the attention of most governments to see to it that their youths have necessary entrepreneurial competencies through the introduction of entrepreneurship education in the school curriculum. However, majority of the youths are still unemployed. The theory of planned behaviour identifies three antecedents which focus on the student that influence their entrepreneurial intention. The objective of the study was identifying aspects of the family (family background, family role modelling, birth order and financial literacy) that influence the student's entrepreneurial intention. The study adopted a qualitative analysis of different studies which addressed the different sources entrepreneurial intention among students. The study established that aspects of the family that fostered student's entrepreneurial intention included family entrepreneurial background, role modelling, birth order and financial literacy. These aspects place the students a notch higher in entrepreneurship education. This information would guide policy makers in developing appropriate educational curriculum in line with the needs of the students and will add knowledge in the field of entrepreneurship education.

**Keywords:** entrepreneurship education, family, parents, birth order, planned behaviour

#### **1. Introduction**

Entrepreneurship is viewed as the solution to unemployment and economic growth ([1], p. 237, [2], p. 17). It is on this backdrop entrepreneurship education was introduced in tertiary institutions with the aim of enabling students to acquire the necessary entrepreneurial competencies as a precursor to be prosperous entrepreneurs ([2], p. 17). However, the theory of planned behaviour identifies three antecedents which influence entrepreneurial intentions, these are; 'personal attitude', 'subjective behaviour' and 'perceived behaviour control' [3]. These antecedents have an intertwining relationship in the student's choice in embarking on an entrepreneurial career path. In the model subjective norm is placed at the centre which implies that social pressure to take up entrepreneurship is influenced by both personal attitude as well as perceived behaviour control [3]. Social pressure according to Rachmawan et al. [4] denotes to the referral people whom in this case are teachers, classmates, siblings and parents and an extension family members. However, the study by Eccles

and Davis-Kean [5] showed that parents would take a greater per cent in the process of nurturing the student's social pressure to become entrepreneurs.

The role of parents in influencing entrepreneurial intention cannot be overemphasised this is because family business contributes 50 to 80% employment opportunities consequently contributing 70% of the country's Gross Domestic Product (GDP) in developing countries [6]. This implies that families have a great contributing factor in perpetuating enterprises. Parents are driven by dynasty perpetuation and the desire to extend family legacy [7–10]. However, the desire to extend the family legacy is met by ambivalence stemming from different codes in the parent offspring relationships.

Entrepreneurial intention is described as the willingness to undertake an entrepreneurial venture [11]. The willingness to take up an entrepreneurial venture would emanate from the family as a role model. The family can either pose positive entrepreneurial intentions or negative entrepreneurial intentions depending on the family relationships. Studies have also shown that parents who are entrepreneurs would influence their students to take up entrepreneurial ventures as a means of perpetuating the family business, or readily support their children to start up new ventures [11–13]. On the other hand the children may take up entrepreneurial ventures out of family necessity [12] even in cases where parents or members of the family were not entrepreneurs.

The current study seeks to conduct a content analysis of available literature to assess the extent with which aspects family background; family income, exposure to role models in this (case parents), parental relationships and parental educational experiences would affect student's entrepreneurial intention. In this study the family is not limited to the nuclear family but also the extended family which includes uncles, aunties and grandparents.

#### **2. The theory of planned behaviour**

Ajzen's theory of Planned Behaviour identifies three antecedents which influence entrepreneurial intentions, these are; personal attitude, subjective behaviour and perceived behaviour control [3]. These antecedents revolve around the student; the student's personal attitude, subjective behaviour, and perceived behaviour towards entrepreneurial intention. While focusing on the student, it is important to assess what revolves around the student in the process of making intentions. Aspects of decision making that revolve around the student are, to a great extent are influenced by persons who are closes to the student who in most cases are the members of the family [3, 14, 15].

Ajzen [3] observed that perceived behaviour control to encompass people's perception on the ease or difficulty of performing the behaviour of interest. This antecedent would be to a great extent be influenced by the members of the family. The social learning theory according to Bandura [16], observed that people learn well through social interactions. These interactions would increase the amount of information at the disposition of the learner. Bandura further described self-efficacy as with how well one will be able to perform a certain task. This ability will depend on the amount of information at the deposition. This means that one with sufficient information will perform the task more efficiently compared with one who has the intention to perform a task but does not have any information concerning the task. This infers that if the student has sufficient information about entrepreneurship then they would develop entrepreneurial intention more compared to a person with limited information. Members of the family would to a great extent provide sufficient information

on entrepreneurship thus influencing ones perception in the ease or difficulty in performing tasks.

Subjective norm describes a perception of significance towards certain action as a result of people's attitude [17]. In the theory of planned behaviour, people close to the student will approve or disapprove certain behaviour. The current study sought to assess the available studies on the role of parents in approving or disapproving student's entrepreneurial intention. Parental approval of their children being entrepreneurs could stem from the fact that either the parents were or were not entrepreneurs or if they could provide support in form of encouragement or finance towards an entrepreneurial venture.

Attitude towards a particular behaviour is described as the degree to which a person has a favourable or unfavourable evaluation of the behaviour [3]. Sabah [17] observed that attitude can be learned such that the favourable the personal attitude the stronger the intention. Thus students can learn to accept or deny a particular attitude. If the attitude is perceived as desirable persons will act towards that particular behaviour on the other hand if they learn that the attitude is not favourable then they would act against the particular behaviour. In the process of influencing a student's attitude towards being entrepreneurs, parents act as the role models in influencing the student's attitude. For instance if a student observed that positive entrepreneurial experiences this would pose positive attitude towards entrepreneurship consequently encouraging students to venture in entrepreneurship and vice versa.

### **3. Objective of the study**

The objective of the study was to;

1.Identify aspects of the family (family background, family role modelling, birth order and financial literacy) that influence the students entrepreneurial intention.

#### **3.1 Methodology**

To explore the families' role in the process of influencing the student's entrepreneurial intention, a qualitative analysis of different studies which addressed the sources of entrepreneurial intention were identified. Identification of the sources of entrepreneurial intention were based on Ajzen's theory of planned behaviour; personal attitude, subjective behaviour and perceived behaviour control of the student. The analysis of the studies was based upon items concerning family background which included; family entrepreneurial background, family role models, birth order and family financial status. Analysis of these items in the different studies provided an insight on the role of the family in influencing the student's entrepreneurial intention.

#### **4. Results**

Studies have shown that one's family background plays a key role in influencing entrepreneurial intention [18, 19]. Family background would vaguely refer to the birth, childhood, residence, economic conditions and the jobs of the parents. Families therefore would have different levels of influencing the students EI. Family influence will depend on the child's birth order in the family, place of residence, parental economic

#### *Entrepreneurship – New Insights*

conditions as well as the jobs parents engage in. Other definitions of family background have included aspects of succession or inheritance [7, 8, 10]. These aspects of the family background influence student's entrepreneurial intention as observed from results obtained in different studies as presented in the following sections.

#### **5. Family entrepreneurial background**

The theory of entrepreneurial opportunity identification identifies entrepreneurial personality traits, social networks, and prior knowledge as antecedents to entrepreneurial alertness [20]. According to this theory, each person's idiosyncratic prior knowledge creates a knowledge corridor that allows them to recognise certain opportunities. These opportunities conferring to Ardichvili et al. [20] would place such persons in a better position to recognise certain opportunities compared to the others. This theory supports the fact that students whose parents have entrepreneurial background predispose their children to entrepreneurial knowledge more compared to students whose parents lack entrepreneurial background.

Different studies have recognised the role of parents in influencing their students EI [18, 19, 21, 22]. Studies by Nguyen [11] and Ranwala [13] have shown that there is a strong relationship between family entrepreneurial backgrounds with their children's entrepreneurial intention. This is attributed to the fact that families pose to the students not only the most reliable role models but also entrepreneurial families are more reliable and agreeable to support business ventures compared to families with no entrepreneurial venture [11–13]. For instance the study by Rachmawan et al. [4] showed that there is a mean difference in EI of students who have no experience in entrepreneurship compared with students with experience in entrepreneurial activities. This is because students with entrepreneurial parents tend to acquire entrepreneurial acumen in their interactions with their parents and the business. This gives them prior experiences of the needs of the clients and the market. This observation is similar to the studies by [21] and Kamitewoko [23] who observed that individuals whose parents have a business have about 10.2% higher like hood to being entrepreneurs. The studies attributed this to the fact that the students were not only observers of their family business but also participated over the years concerning their family business this subjective exposure to entrepreneurial activities impact on the student's career choice.

The study by Molina [12] showed that not all entrepreneurs emanate from entrepreneurial families; some persons have become entrepreneurs out of economic necessity. However, the economic necessity stems from the needs of the family. This implies that families with limited entrepreneurial knowledge would appreciate their children's entrepreneurial venture as long as it sustains the family economic needs. Consequently, while students with entrepreneurial background have prior exposure to entrepreneurship, students with no entrepreneurial background would become entrepreneurs drawn from family necessity and consequently learn while engaging in the entrepreneurial venture.

### **6. Family role modelling**

Role models can be drawn from two constructs, role which is the tendency to identify with others or role modelling which is described as a psychological matching of cognitive skills between an observer and the person being observed [24]. Role models drawn from the student's direct environment such as family members tend to have strong ties with the entrepreneur or in this case the student Boldureanu [25]. Such role models will not only fit to be the role but also role model the student this is because they are closest to the student. For instance there are families that introduce their children to their businesses at a tender age and help in carrying out the activities of the family in the business this relationships form strong entrepreneurial ties [16, 26]. Therefore family role models are described as an important source of social capital.

While it might seem easy to measure parental influence, it is important to assess the relationship between the parental gender and the student's gender. In role modelling, Carli [27] observed that male and female take up different roles such that while females tend to take up caretaking domestic roles which are perceived to be of lower status, males are perceived to take up higher status occupational roles. This tends to disadvantage females compared to males in level of influence such that people would tend to resist female influence compared with male influence. However, the assumption that females have limited social influence could be limited to situations where they have succeeded socially and their performance is superior to that of their male counterparts [27].

The study by Rocha and van Praag [28] showed that female entrepreneurs are able to break gender stereotypes while at the same time influence their female employees especially those with no family entrepreneurial background. Their study further showed that female entrepreneurs are 60–90% more likely to influence their female employees to become entrepreneurs with similar age, educational background and birthplace as theirs. This strong influence is based on the role of the female entrepreneurs acting as role models to their juniors. The strong female influence is also supported by the study by Rachmawan et al. [4] which showed that mother's occupation has a significant influence on the EI of their students such that mothers who are entrepreneurs influence EI more among their children compared with mothers who worked as civil servants.

Entrepreneurship has been stereotyped to be associated with masculinity. This is attributed to accident's such the "need for achievement" and the "need for power" which have been associated with aspects of masculinity in comparison to femininity [29–31]. These attributes according to these studies have affected daughters more compared to the sons where they are limited to taking up their family business and business identity. This aspect pulls out prospective female entrepreneurs from pursuing entrepreneurship or alternatively pushes them to start their own business venture. However the study observed that despite gender stereotype in entrepreneurship, fathers encourage their daughters to be entrepreneurs and vise versa.

Whilst role modelling is viewed as a strong precursor to entrepreneurship [28] the studies by Karimi et al. [32] and Van Ewijk and Belghiti-Mahut [33] showed that subjective norm influenced females to be entrepreneurs compared to the males. This was attributed to the fact that females are more sensitive to social approval. Thus through role modelling and social approval females would be influenced to be entrepreneurs.

## **7. Birth order in the family**

Birth order has always taken a central position in influencing the human tradition since time memorial. Birth order is described as the numerical sequence in the child's arrival into a family [34]. Key in the birth order is the first born children. Paulhus [34] further observed that apart from the first born being regarded as their parent's companions hence assigned tougher responsibilities and enjoying family limited resources; the primogeniture tradition gives the first born a special status in the family inheritance. This aspect predisposes the first born to the inheritance of family wealth and this is true in most African cultures where first born sons act as the family spokesperson and controller of family wealth [34]. This implies that first born children and in most cases sons are the inheritors of family business in situations where the parents were entrepreneurs.

Sulloway [35] has explained the difference in the intelligence of the first born in comparison with the later born using Zajonc's confluence model of intellectual ability. According to this model, first born with siblings are the tutors and this gives them intellectual advantage compared to the later born in the family. However this association provides limited information with regards to entrepreneurial intention. A study by Robinson and Hunt [36] showed that there was no relationship between entrepreneurship tendencies and birth order. Adler [37] as quoted by Robinson and Hunt [36], the way the child is raised shapes their personality and consequently their entrepreneurial tendencies. This fact refutes the earlier belief the family order would influence entrepreneurial intention. However, while Robinson and Hunt [36] based their research on the birth order and entrepreneurial tendencies, it is important to note that the birth order theories described by Sulloway [35] and Paulhus [34] tried to express the birth order advantage of first born in comparison with the later born. It is the birth order advantage that influences EI among siblings especially in situations where parents were entrepreneurs.

Last born children tend to break the family norms or traditions [35]. This could be true in cases where either family member were not entrepreneurs in such situations the last born children who tend to be more outgoing and parental strictness less diminished. This prompts them to venture in other professional lines other than family ties.

#### **8. Financial literacy**

Whilst financial muscle has been observed as an important ingredient for one to be an entrepreneur [38], the study by Molina [12] observed that entrepreneurs from families which are not financially endowed are more likely to be necessity motivated to be entrepreneurs. This suggests an aspect of finance which is necessary for one to become a successful entrepreneur that is financial literacy. Financial literacy is described as knowledge of financial concepts and skills to manage financial resources. Studies by Aldi et al. [39] and Skica et al. [40] have shown that students who have financial literacy are more likely to be successful entrepreneurs. On the other hand erroneous financial decisions can impact negatively on an entrepreneurial venture. While financial literacy can be taught in a school setting, Antoni et al. [41] showed that parents have a significant role of modelling and reinforcing their student's financial literacy. According to their study, if family would possess responsible financial behaviour then they would most likely teach their students the same. This implies that entrepreneurial members of the family have knowledge on financial literacy and consequently are in a better position to teach their children the same.
