Parent Entrepreneurs: to What Extent Can They Influence Their Children to Become Entrepreneurs?

Many parents have not succeeded in using the mere fact that they are entrepreneurs to influence their children to also become entrepreneurs. This has been one of the reasons why many private businesses have collapsed. Since other researchers have concentrated on factors about the prospective entrepreneur as driving force, this research concentrates on parents as driving force for children. It therefore became necessary to discover other factors which parents could use to create this influence. A hypothesis was tested and that directed the focus of this study. 303 children who were 18 years and above and had entrepreneurial parents were sampled for the study. A questionnaire was used to generate primary data for the study. The dependent variable in the model was BEPI (Becoming an Entrepreneur through Parental Influence) was dichotomized so according to (Gujurati 2006), the Probit model was recommended for the analysis. Out of the five explanatory variables which were used in the analysis (Lifestyle of parents (LOP), Similarity in characteristics (SIC), Success in Business (SIB), Tides between child and parent (TCP) and Parent having other entrepreneurial friends(PEF)) four showed a positive correlation with BEPI except PEF which showed negative correlation. All the variables were significant at 1%, 5% or 10%. LOP was significant at 10%, PEF at 5% and TCP, SIC SIB were all at 1%