Influence of parental support on entrepreneurial intention of university students: empirical evidence in Brazil

Abstract

Entrepreneurial parents are important agents for transmitting entrepreneurial intentions to their children. Recent studies have highlighted that parental influence on children’s entrepreneurial careers can increase when peers are of the same gender (gender homophily) - the effects become greater in father-son or mother-daughter dyads. However, exposure to entrepreneurial parents alone is insufficient to explain their children’s entrepreneurial intentions, as dimensions such as the nature of communication/interaction and financial incentives can impact this relationship. However, these transmission factors/channels have received little attention in the literature. Thus, this study examines whether having entrepreneurial parents affects their children’s propensity to become entrepreneurs, analyzing the main transmission factors/channels and whether gender homophily moderates this effect. The sample consisted of 20,623 university students who participated in the Global University Entrepreneurial Spirit Students’ Survey -GUESSS Brazil 2018. Data were analyzed using Multiple Linear Regression and Probit Regression Models. The results suggest that having an entrepreneurial father or entrepreneurial parents (father and mother) is associated with an increase in the probability of an individual becoming an entrepreneur. This effect is greater in the case of males in the father-son dyad. In addition, with regard to transmission channels, it was found that parental influence on the entrepreneurial career is exerted, above all, by the professional models that parents represent (career-related modeling), comments/compliments from parents (verbal encouragement), and financial/material incentive (instrumental assistance).

Keywords:
Entrepreneurship; Intergenerational transmission; Gender homophily; Parental support

Resumo

Pais empreendedores são importantes agentes para transmitir intenções empreendedoras aos filhos. Estudos recentes têm destacado que a influência parental sobre a carreira empreendedora dos filhos pode aumentar quando os pares forem do mesmo gênero (homofilia de gênero), ou seja, os efeitos tornam-se maiores nas díades pai-filho ou mãe-filha. No entanto, apenas a exposição a pais empreendedores é insuficiente para explicar as intenções empreendedoras dos filhos, visto que dimensões como a natureza da comunicação/interação e até mesmo os incentivos financeiros podem impactar esse relacionamento. Todavia, esses canais de transmissão têm recebido pouca atenção na literatura. Assim, o objetivo deste estudo é examinar se ter pais empreendedores afeta a propensão a empreender dos filhos, analisando quais os principais fatores/canais de transmissão, bem como se a homofilia de gênero exerce papel moderador de tal efeito. A amostra foi composta por 20.623 estudantes universitários que participaram do Global University Entrepreneurial Spirit Students’ Survey (GUESSS) Brasil 2018. Os dados foram analisados por meio de Modelos de Regressão Linear Múltipla e Regressão Probit. Os resultados sugerem que possuir pai empreendedor ou pais (pai e mãe) empreendedores está associado a um aumento na probabilidade de o indivíduo empreender e tal efeito é maior no caso do gênero masculino na díade pai-filho. Ademais, no tocante aos canais de transmissão, constatou-se que a influência parental na carreira empreendedora é exercida, sobretudo, pelos modelos de profissionais que os pais representam (modelagem relacionada com a carreira), comentários/elogios dos pais (encorajamento verbal), bem como pelo incentivo financeiro/material (assistência instrumental).

Palavras-chave:
Empreendedorismo; Transmissão intergeracional; Homofilia de gênero; Suporte parental

Resumen

Los padres emprendedores son agentes importantes para transmitir las intenciones emprendedoras a sus hijos. Estudios recientes han destacado que la influencia de los padres en las carreras emprendedoras de los hijos puede aumentar cuando los pares son del mismo género (homofilia de género), es decir, los efectos son mayores en las díadas padre-hijo o madre-hija. Sin embargo, la exposición a padres emprendedores por sí sola es insuficiente para explicar las intenciones emprendedoras de los hijos, ya que dimensiones como la naturaleza de la comunicación/interacción e incluso los incentivos financieros pueden afectar esta relación. Sin embargo, estos factores/canales de transmisión han recibido poca atención en la literatura. Así, el objetivo de este estudio es examinar si tener padres emprendedores afecta a la propensión a emprender de sus hijos, analizando los principales factores/canales de transmisión, así como si la homofilia de género juega un papel moderador de este efecto. La muestra estuvo compuesta por 20.623 estudiantes universitarios que participaron en la encuesta Global University Entrepreneurial Spirit Students’ Survey -GUESSS Brasil 2018. Los datos se analizaron mediante modelos de regresión lineal múltiple y regresión probit. Los resultados sugieren que tener un padre emprendedor o padres emprendedores (padre y madre) está asociado con un aumento en la probabilidad de emprender de un individuo y este efecto es mayor en el caso de los varones, en la díada padre-hijo. Además, en cuanto a los canales de transmisión, se encontró que la influencia de los padres en la carrera emprendedora la ejercen, sobre todo, los modelos profesionales que representan los padres (modelado relacionado con la carrera), los comentarios/elogios de los padres (estímulos verbales), así como el incentivo económico/material (asistencia instrumental).

Palabras clave:
Emprendimiento; Transmisión intergeneracional; Homofilia de género; Apoyo de los padres

INTRODUCTION

The family background represents an important influence on the development of an individual’s entrepreneurial intention, since parents provide support to their children in choosing entrepreneurship as a career and this can occur by transfer of both human and financial capital (Lindquist, Sol, & Van Praag, 2015; Mishkin, 2021; Moreno-Gómez, Gómez-Araujo, & Castillo-De-Andreis, 2019; Staniewski & Awruk, 2021; Vladasel, 2019). Given the role of entrepreneurial activity in the growth and economic development of countries, studying parental influence is particularly relevant, since entrepreneurship, especially in undeveloped economies, offers individuals the chance to seek higher incomes (Castellanza, 2020) and sometimes becomes the only way out of access to employment and livelihood (Kimmitt, Muñoz, & Newbery, 2020; Urbano & Alvarez, 2014).

Regarding the intergenerational transmission (between different generations) of entrepreneurial behavior, parents are important socializing agents that influence interests in their children’s entrepreneurial career (Mishkin, 2021; Moreno-Gómez et al., 2019). The literature indicates that having entrepreneurial parents is positively related to an increase in the probability of subjects becoming entrepreneurs (Mishkin, 2021; Moreno-Gómez, Gómez-Araujo, Ferrer-Ortíz, & Pena-Ruiz, 2022). This transmission of entrepreneurial intentions and attitudes is mediated not only by observation, but also by social interaction with parents (Mishkin, 2021; Staniewski & Awruk, 2021). Previous studies have explored several factors which explain these results. They include genetic factors (Nicolaou & Shane, 2009, 2010; Nofal, Nicolaou, Symeonidou, & Shane, 2018), financial support (Welsh & Kaciak, 2019), transmission of values related to entrepreneurship (Wyrwich, 2015), the role models/references role models (Hoffmann, Junge, & Malchow-Møller, 2015; Laspita, Breugst, Heblich, & Patzelt, 2012; Lindquist et al., 2015; Staniewski & Awruk, 2021) and how gender moderates such an effect (Mishkin, 2021; Moreno-Gómez et al., 2019, 2022).

Exposure to entrepreneurial parents is insufficient to explain the entry of their children into entrepreneurial activity (Moreno-Gómez et al., 2022; Soleimanof, Morris, & Jang, 2021) and, for this reason, it is necessary to examine whether this relationship is impacted by the nature of communications and interactions within the family, as well as by other affective and/or financial dimensions, identifying the main channels that mediate this transmission (Soleimanof, Morris, & Jang, 2021). Moreover, although intergenerational transmission is widely recognized as a key variable in the choice of entrepreneurship as a career (Hopp, Minarikova, & Speil, 2019; Mishkin, 2021; Sahinidis, Stavroulakis, Kossieri, & Varelas, 2019; Staniewski & Awruk, 2021), few studies have considered which mechanisms mediate this transmission of intention and entrepreneurial attitude between generations.

Additionally, it is important to further explore the heterogeneous effects related to the gender of parents and children (Moreno-Gómez et al., 2019, 2022; Zelekha, 2021). The literature has referred to this attraction for similarity as gender homophilia, indicating that the entrepreneurial father exerts greater influence on the sons than on the daughters and, in turn, the mother exerts greater influence on the daughters (Laspita, et al., 2012; Hoffmann, et al., 2015; Mishkin, 2021; Moreno-Gómez et al., 2019, 2022). In other words, this principle of interaction between individuals and building bonds based on similarities is called homophilia (McPherson, Smith-Lovin, & Cook, 2001). Knowledge about this mechanism can increase the understanding of gender dynamics in the transmission of entrepreneurship, which, more generally, is a question still little explored (Mishkin, 2021; Moreno-Gómez et al., 2019, 2022; Zelekha, 2021).

As Moreno-Gómez et al. (2022) and Romaní, Martins, Varela, and Pombo (2021) argue, most research on parental support in the decision of children to become entrepreneurs - especially on a gender perspective and involving university students - has been based on the experience of developed countries, so that studies that corroborate these results in Latin American contexts are lacking (Moreno-Gómez et al., 2022; Urbano & Alvarez, 2014). Brazil, a country in this region, is an insightful environment to conduct such research, since it has a high rate of entrepreneurial activity at an early stage and the inequality between men and women in entrepreneurship is increasing (Global Entrepreneurship Monitor [GEM], 2020).

Based on these evidences, the present study aims to examine whether having entrepreneurial parents affects the propensity of children to undertake, analyzing which are the main transmission channels, as well as whether gender homophilia plays a moderating role of such effect. To estimate the effect of factors related to the transmission of the entrepreneurial career, four channels mentioned in the literature were considered: instrumental assistance, verbal encouragement, emotional support, and career-related modeling, which were dimensions initially studied by Turner, Alliman-Brissett, Lapan, Udipi. and Ergun (2003).

To this end, the present study made use of data from the Global University Entrepreneurial Spirit Students’ Survey (GUESSS), conducted in 2018 (GUESSS, 2020). The sample consisted of data only from GUESSS Brazil 2018, whose questionnaire was answered by 20,623 Brazilian university students (M. Jácome & O. Jácome, 2020). For analysis, multiple linear regression models (Wooldridge, 2019) were used, with Entrepreneurial Intention as a dependent variable, and the Probit Regression method with medium marginal effects (Angrist & Pischke, 2008) was applied as a binary response model.

This study contributes not only to empirical evidence, but also to the theory, reinforcing the knowledge and understanding about the function of entrepreneurial activity, as well as the support of parents (material or affective/emotional) and gender as a moderator in the development of entrepreneurship in Brazil. The perspective of gender homophilia offers an additional insight to understand the greater male participation in entrepreneurial activity with a focus on the intergenerational parental role, whose impact tends to be stronger in men than in women (Criaco, Sieger, Wennberg, Chirico, & Minola, 2017; Moreno-Gómez et al., 2019, 2022; Nowiński & Haddoud, 2019).

Therefore, this research sheds light on the intergenerational transmission of entrepreneurship in Brazil, a Latin American country, where the strengthening of entrepreneurial activity is vital for socioeconomic development and generation of employment and income. Knowing these particularities also contributes to educators and policymakers to generate better strategies to promote entrepreneurship, aimed at the reality of each country (Romaní et al., 2021). The theoretical contribution of this study lies in the introduction of specific antecedents: channels of parental support. Thus, it presents new evidence about, logically, the influence of parents on the propensity to undertake of their children, as well as the moderating role of gender, which in theoretical terms are widely explored themes. The differential of the present research consists in the test of the factors by which such influence is exerted, an approach that is not yet common in the literature, especially in the Brazilian context.

The rest of this article is organized as follows: the second section presents a review of the empirical literature, as well as the hypotheses formulated for this study. The third section describes the database, variables, as well as the analysis strategy. The fourth section presents empirical analysis and discussion of the results. The fifth and final section presents the conclusions of the article.

REVIEW OF LITERATURE AND HYPOTHESES

Parental support and intergenerational entrepreneurship transmission

Throughout their lives, individuals are submitted to various sources of learning, which can guide them to pursue an entrepreneurial career (Soleimanof et al., 2021). Among these reference points, the family consists of the most effective environment, due to its social proximity (Criaco et al., 2017; Hoffmann et al., 2015; Lindquist et al., 2015). The family environment is an important vector for entrepreneurial cognitions and intentions (Wyrwich, 2015) and, especially, the figure of parents represents the greatest influence on the decisions of children to become entrepreneurs (Chlosta, Patzelt, Klein, & Dormann, 2012; Hopp et al., 2019; Moreno-Gómez et al., 2019; Staniewski & Awruk, 2021).

Intergenerational transmission is an important pillar for understanding entrepreneurial intent and behavior (Giménez-Nadal, Molina, & Velilla, 2021) and in recent years has gained attention in literature. In this perspective, children of entrepreneurs are more likely to engage in entrepreneurial activities (Hoffmann et al., 2015; Staniewski & Awruk, 2021; Wyrwich, 2015), either by continuing family businesses or starting their own ventures. Such transmission occurs because the family environment is conducive to the transfer of values, traditions and teachings about entrepreneurship, shaping the aspirations of individuals for a given activity (Criaco et al., 2017).

How do parent-child interactions affect the intergenerational transmission of entrepreneurial intentions? As an answer to this question, the literature highlights the hypothesis of role models (role of parents as references for children), emphasizing that the probability of the individual starting a business in the future is influenced by his perception of the parents’ business performance (Chlosta et al., 2012; Criaco et al., 2017; Hoffmann et al., 2015; Moreno-Gómez et al., 2019, 2022; Soleimanof et al., 2021). Furthermore, other studies have emphasized that previous experience in family businesses can generate a significantly positive effect on the entrepreneurial intention of individuals (Laspita et al., 2012; Mishkin, 2021).

Other currents in the literature argue that genetic inheritances increase the tendency of individuals to pursue entrepreneurship as a career (Nicolaou et al., 2009), considering that genes can generate psychological effects, motivated by chemical reactions in the brain, making people more likely to engage in entrepreneurial activities; develop traits of extroversion, which can facilitate engagement and predisposition to undertake; develop people’s sensitivity to environmental interactions and influence experiences in entrepreneurial ecosystems (Nicolaou & Shane, 2009, 2010; Nofal et al., 2018). Additionally, the transmission of entrepreneurial behavior from parents to adoptive children is as significant as that occurring among biological parents and children (Lindquist et al., 2015), since this phenomenon is not only explained by genetic factors, but also by other socioeconomic aspects (Mishkin, 2021).

Previous research indicates that the transmission of behaviors related to entrepreneurship involves more than one generation, that is, entrepreneurial intentions are transmitted by parent-child relationships, as well as grandchildren, so that such effects differ between regions, considering that they are influenced by cultural factors (Laspita et al., 2012). Corroborating this literature, Chlosta et al. (2012) and Sahinidis et al. (2019) identified that when both father and mother are entrepreneurs or when only the father is an entrepreneur there is a positive and statistically significant effect on the probability of their children undertaking. When only the mother is an entrepreneur, although the effect is significant, the influence is much smaller.

In general, entrepreneurial parents can serve as sources of information, support, and inspiration to convey entrepreneurial intentions to their children (Hopp et al., 2019; Moreno-Gómez et al., 2019, 2022; Soleimanof et al., 2021). However, the role of fathers seems to be greater than that of mothers (Chlosta et al., 2012; Sahinidis et al., 2019; Zelekha, 2021). Given the literature listed so far and the arguments explained, the first hypothesis proposed in this study is:

H1. Having enterprising parents increases the propensity of individuals to become entrepreneurs.

On the other hand, it is worth noting that only exposure to entrepreneurial parents is insufficient to explain the entry of children into entrepreneurial activity (Moreno-Gómez et al., 2022; Soleimanof et al., 2021). Thus, affective, financial and communication interactions between the members of the family of origin are factors to be considered (Staniewski, & Awruk, 2021). Thus, if the individual grew up in an environment with a good social relationship with the parents and had an entrepreneurial father and/or mother, he/she becomes more likely to start a company (Hopp et al., 2019; Zelekha, 2021).

Although the literature on intergenerational transmission of entrepreneurship is vast, little has been studied about the antecedents of this transmission (Moreno-Gómez, et al., 2019, 2022). From the behavioral point of view, the object of study of this research, the main channels of intergenerational transmission of entrepreneurial behavior are: parental attitudes, parental communication and inspirational models/references (Staniewski & Awruk, 2021). Regarding the support of parents to their children’s careers, Turner et al. (2003) pointed to four dimensions as key factors: material and financial support (Instrumental Assistance); comments/compliments (Verbal Encouragement); affective support in the face of obstacles (Emotional Support); and attitudes and behaviors that make them models/examples of professionals for their children (Career-Related Modeling).

Thus, the influence generated by the parent-child relationship can be exercised through specific channels (Turner et al., 2003). Previous studies explore the influence of role models (role of parents as a model/reference for children), arguing that parents are one of the main influencers for the choice of entrepreneurship as a career and, therefore, serve as models for their offspring (Closta et al., 2012; Moreno-Gómez et al., 2019, 2022; Wyrwich et al., 2015). Thus, the second hypothesis formulated is:

H2. Having a parental model (career-related modeling) increases the propensity for entrepreneurship.

Additionally, it is noteworthy that socialization in the process of entrepreneurial learning between generations is an important factor and was addressed in the work of Hopp et al. (2019). These authors argue that the higher the quality of the process of social interaction between parents and children, the greater the intensity of the effect of the parental model. Other aspects to be considered are the affective dimensions of parental support, since this relationship depends on the nature of communications and interactions within the family (Soleimanof et al., 2021; Turner et al., 2003). Finally, instrumental or financial/material support also influences the entrepreneurship of future generations, who may have more resources to put their business ideas into practice (Welsh & Kaciak, 2019).

Based on the foregoing ideas, the following three hypotheses have been formulated:

H3. The verbal encouragement of parents increases their children’s entrepreneurial intention.

H4. The emotional support of parents increases their children’s entrepreneurial intention.

H5. The instrumental assistance of parents increases the entrepreneurial intention of their children.

Finally, it is noteworthy that there are no national studies that discuss the intergenerational transmission of entrepreneurship, including the four dimensions proposed by Turner et al. (2003). At the international level, Soleimanof et al. (2021) used the affective dimension and Romaní et al. (2022) used all four factors and related to the role of the parental model. In addition, Romaní et al. (2022) argued that children are more likely to enter entrepreneurial activity when parents provide resources and affective commitment. These results make it possible to assume that the four dimensions can influence entrepreneurial intention and, for this reason, make up the hypotheses of this study.

Gender homophilia in the transmission of entrepreneurial intention

The literature on homophilia highlights that contact between similar individuals (similar gender, age, and ethnicity, for example) tends to occur in greater intensity than between different individuals (McPherson et al., 2001). Gender homophilia basically consists of the tendency of individuals to associate with members of the same gender (Mehta & Strough, 2009). Some research suggests that men tend to form broader social networks than women (Goodreau, Kitts, & Morris, 2009), who in turn are more likely to establish stronger relationships (McPherson et al., 2001). Thus, when treated in the field of studies in entrepreneurship, gender homophilia allows us to reflect on the difference between men and women in entrepreneurial activity, because the establishing of a broader network and the choice of association between individuals of the same gender, can help explain the great male participation in this activity.

Entrepreneurial activity represents an alternative employment opportunity for women (Zelekha, 2021). In many economies there is still a lower proportion of women in entrepreneurship, although this inequality is becoming increasingly smaller (GEM, 2020). The reasons that explain the gender dynamics in entrepreneurship are diverse, but the literature highlights that the lack of incentives (family, capital restrictions, as well as difficulties in accessing financing, for example) decreases the probability of women starting an entrepreneurial career (Moreno-Gómez et al., 2019, 2022; Zelekha, 2021). In addition, parental role models affect women less than men (Moreno-Gómez et al., 2019, 2022; Yang & Del-Carmen-Triana, 2019).

The hypothesis of transmission of entrepreneurial behavior through role models is one of the most addressed in the literature and, based on it, the theoretical and empirical development of homophilia stands out, in which individuals are more likely to find inspiration in parents of the same gender (father-son or mother-daughter). Hoffmann et al. (2015) presented empirical evidence that the entrepreneurial father model exerts greater influence for men than for women. Similarly, the effect of enterprising mothers is greater for daughters than for their children. On the other hand, other works report that female offspring can also be influenced by a male parental model (Abbasianchavari & Moritz, 2021).

Previous research indicates that the influence of parents as a reference of entrepreneurs for their children is moderated by gender (Hoffmann et al., 2015; Mishkin, 2021) and that the opportunity cost of entrepreneurship is higher for women, who are more averse to the risk of entering entrepreneurial activity (Feldmann et al., 2020; Henry et al., 2016). The father model is more significant for men than for women (Yang & Del-Carmen-Triana, 2019), suggesting the influence of gender homophilic networks in the family context as a determinant of entrepreneurial behavior between generations (Moreno-Gómez et al., 2019, 2022).

Given the literature mentioned in this topic, the last hypotheses proposed in this study are:

H6. Entrepreneurial intention is higher among male than female individuals.

H7. The transmission of entrepreneurial intentions/attitudes, from parents to children, is moderated by gender homophilia.

METHODOLOGY

Data and variables

The database used in this study came from the Brazilian version of the Global University Entrepreneurial Spirit Students’ Survey - GUESSS Brasil 2018. GUESSS is a worldwide study that focuses on characterizing the spirit and entrepreneurial behavior of university students, investigating entrepreneurial intentions and activities, individual backgrounds, family background, as well as aspects related to the university context (GUESSS, 2020). With regard to the Brazilian scenario, the GUESSS Brasil study brings together more than 60 Higher Education Institutions (HEIs) (GUESSS, 2020). It is noteworthy that the database of the Global University Entrepreneurial Spirit Students’ Survey is not in the public domain, for this reason it was necessary to make a request to the study organization. Thus, access to data occurred after request return made via e-mail.

For this study, data from GUESSS Brasil 2018 allowed access to information about the intergenerational transmission of entrepreneurial intention. Some related studies used, within other countries, GUESSS data from previous years (Criaco et al., 2017; Laspita et al., 2012; Moreno-Gómez et al., 2019, 2022). In addition, it is noteworthy that the GUESSS edition of 2018 had more than 208,000 responses and in Brazil alone the questionnaire was answered by 20,623 university students, being the second country with the highest number of respondents among the 54 participating countries (M. Jácome & O. Jácome, 2020).

To identify entrepreneurial intention (EI), a variable dependent on this study, the following GUESSS question was used: “Which career do you intend to follow after graduating?”. This variable was coded as 1 (one) if the students indicated “Entrepreneur” and 0 (zero) otherwise. The main explanatory variables present in the base and included in some models were gender, entrepreneurial parents (three distinct variables: father, mother, and both) and the four variables related to parents’ support (Instrumental Assistance, Verbal Encouragement, Emotional Support and Career-Related Modeling).

Gender was approached by means of a binary variable, being 1 for men and 0 for women. The measurement of the models of entrepreneurial parents was obtained by the question of the GUESSS study: “Are your parents self-employed?”. This variable was subdivided into an entrepreneurial father or entrepreneurial mother or both being entrepreneurs (Chlosta et al., 2012; Criaco et al., 2017; Moreno-Gomez et al., 2019, 2022). Some models include control variables, which were age (Moreno-Gomez et al., 2019) and field of study (Criaco et al., 2017; Moreno-Gomez et al., 2019, 2022). Age is a continuous variable that represents the age of students, but the square of age was also used (the quadratic specification is used to capture increasing or decreasing marginal returns); The study area was represented by two dummy variables for the following areas: Business/Management and Engineering.

In addition, it is highlighted in which the four variables related to the support of parents (Instrumental Assistance, Verbal Encouragement, Emotional Support and Career-Related Modeling) were described and measured in the GUESSS questionnaire. The collection instrument had sections to be answered specifically by students who answered that “Entrepreneur” would be the intended career after graduating and who had enterprising parents (father, mother, or both), with questions associated with the relationship of these children with their parents. Moreover, these parts of the questionnaire included items in which the respondent would have to indicate how the parents behaved in relation to them, in forming their level of agreement with the statements listed in the questionnaire (from 1 = Totally disagree to 7 = Totally agree).

In this sense, to measure the dimensions Instrumental Assistance, Verbal Encouragement, Emotional Support and Career-Related Modeling, this article performed a Confirmatory Factor Analysis to group the questions proposed in the questionnaire into factors. Each group was composed of three questions in which the respondent would have to indicate how the parents behaved towards them, informing their level of agreement with the statements listed in the questionnaire (1 = Totally disagree, 7 = Totally agree).

Regarding the Instrumental Assistance factor, the questionnaire of this study asked respondents to indicate agreement for the statements that parents provide resources and/or tasks that stimulate skills, talking about how such learning can help them in business. For the Verbal Encouragement dimension, students should indicate whether they agreed that parents encourage them to learn as much as possible, perform well in classes and/or declare that they are proud of their performances. Additionally, to measure the Emotional Support dimension, the question was whether parents talked about how fun work could be in their business and/or said motivating things and/or showed animation when their children talked about a possible future entrepreneurial career. Finally, for the Career-Related Modeling dimension, respondents should indicate whether their parents take them to their jobs/businesses and/or talk about the type of work they do in their business.

Analysis strategies

This research had two methodological approaches: Multiple Linear Regression and Probit Regression. The first method controls multiple factors that influence the model-dependent variable (Wooldridge, 2019). This analysis strategy was used to infer whether there is a relationship between entrepreneurial intention and sociodemographic and behavioral variables.

Considering that in this work the interest lies, above all, in the probability of response of entrepreneurial intention, we sought to estimate a probability model. Among the statistical methods for estimating models in which the returning is of the binary type, the Probit Regression model consists of an alternative to be used (Wooldridge, 2019), ensuring that the estimated probabilities are between logical limits 0 and 1 (Angrist & Pischke, 2008). In other words, when one wishes to explain how a certain binary dependent variable behaves, one can use an Accumulated Distribution Function for the calculation of probability, as in the case of the Probit model, which emerges from the normal distribution (Angrist & Pischke, 2008; Wooldridge, 2019).

Considering that the Probit Regression estimates the coefficients from the maximum likelihood method, it is not possible to directly interpret the estimators (Wooldridge, 2019). To verify the meaning and magnitude of the effect of the parameters on the intention to undertake, obtaining results that allow quantitative implications on the impacts of the variables, the average marginal effects of the coefficients were calculated. In summary, the Probit model was used to verify the effect of the variables associated with the entrepreneurial activity of parents on the probability that the students opt for the entrepreneurial career. Some related studies discuss the usefulness of Probit regression (Chlosta et al., 2012; Criaco et al., 2017; Hoffmann et al., 2015; Laspita et al., 2012; Lindquist et al., 2015; Wyrwich, 2015).

Moreover, for the estimation of the constructs associated with parental support, a Confirmatory Factorial Analysis was performed. Factor Analysis is an interdependence technique in which it is possible to group a set of variables into dimensions to represent a phenomenon, reducing variables through a multivariate process that takes into account the commonalities existing between the variables (Hair, Black, Babin, Anderson, & Tatham, 2009). From it, it was possible to estimate the factorial scores used as variables which represented the four dimensions of parental support.

RESULTS AND DISCUSSIONS

Regarding the descriptive statistics of the variables, it is noteworthy that the study involved individuals aged between 16 and 58 years, and the mean age was 34.48 years. Regarding gender, 44.6% of the students involved were male. In addition, a considerable portion of the sample focuses on areas of study of Business (22.2%) and Engineering (22%).

When performing the factor analysis, it was observed that the KMO test presented a value of 0.723 and, through Bartlett’s scouting test, the null hypothesis was rejected that the correlation matrix would be an identity matrix (Hair et al., 2009). Cronbach’s Alpha was 0.895 for Instrumental Assistance; 0.918 for verbal encouragement; 0.896 for Emotional Support; and 0.937 for Career-Related Modeling. The total variance explained by the model was 86.1%, considering the Varimax rotation. The four factors were identified, corroborating Turner et al. (2003).

The results of estimating multiple regression models can be seen in Table 1. Five models were estimated, with entrepreneurial intention (EI) as the dependent variable.

Table 1
Multiple Linear Regression Models with Dependent Variable IE

Variables	Model I	Model II	Model III	Model IV	Model V
Male gender	0.167***	0.164***	0.158***	0.160***	0.164***
	(0.0182)	(0.0348)	(0.0350)	(0.0353)	(0.0355)
Enterprising father	0.0519**	0.0419	0.0561	0.0678	0.0674
	(0.0249)	(0.0533)	(0.0538)	(0.0544)	(0.0544)
Enterprising mother	0.0663*	0.0646	0.0778	0.0836	0.0840
	(0.0344)	(0.0597)	(0.0602)	(0.0608)	(0.0608)
Father and mother entrepreneurs	0.109***	0.0605	0.0525	0.0522	0.0522
	(0.0317)	(0.0576)	(0.0579)	(0.0583)	(0.0583)
Age	-0.000541	-0.00227*	-0.00216	-0.00310**	-0.00305**
	(0.000677)	(0.00134)	(0.00134)	(0.00142)	(0.00142)
Age2	0.000000208	0.000000741	0.000000669	0.00000114	0.00000111
	(0.00000034)	(0.00000070)	(0.00000070)	(0.00000074)	(0.00000074)
Business area	0.230***	0.129***	0.115**	0.118**	0.119**
	(0.0223)	(0.0454)	(0.0458)	(0.0462)	(0.0462)
Engineering area	0.223***	0.317***	0.304***	0.307***	0.305***
	(0.0226)	(0.0408)	(0.0410)	(0.0413)	(0.0413)
Verbal Encouragement		0.227***	0.153***	0.141***	0.143***
		(0.0170)	(0.0237)	(0.0242)	(0.0243)
Instrumental Assistance			0.105***	0.0994***	0.0999***
			(0.0240)	(0.0282)	(0.0282)
Career Modeling				0.0208	0.0154
				(0.0218)	(0.0225)
Emotional Support					0.0161
					(0.0175)
Constant	-0.175***	-0.154**	-0.152**	-0.143**	-0.145**
	(0.0224)	(0.0600)	(0.0603)	(0.0619)	(0.0619)
Observations	12,893	3,403	3,350	3,299	3,299
R-squared	0.024	0.084	0.087	0.086	0.087

• Standard error in parentheses. p<0.01, ** p<0.05, * p<0.1. Source: Elaborated by the authors.

Model I, which does not consider the four variables related to parents’ support, has a lower explanatory power (coefficient of determination; ) than the other models. The results support hypothesis 1 (Having entrepreneurial parents increases the propensity of individuals to become entrepreneurs), because in this estimation, the variables “Entrepreneurial Father” and “Entrepreneurial Father and Mother” were statistically significant and with positive effect at a significance level of 5% and 1% respectively. In the case of maternal-only effect, the return is only 10%. The lower maternal effect, although significant, corroborates the results of Chlosta et al. (2012) and Zelekha (2021) who identified the effect of the fathers’ model being greater than that of the mothers.

In all five estimation models, the male gender was statistically significant at 1% and with positive effect. This demonstrates that there is a difference in the mean EI between men and women, being this intention greater for men (hypothesis 6). The literature already warns of the gender discrepancy in entrepreneurship, so that female participation in the opening of companies is predominantly lower than the male one (Markussen & Røed, 2017; Zelekha, 2021).

Regarding the dimensions of support of parents related to career, it is highlighted that only the factors of verbal encouragement (hypothesis 3) and instrumental assistance (hypothesis 5) were statistically significant and with positive effects on the entrepreneurial intention in all estimates in which they were included. These results corroborate Romaní et al. (2022) and Soleimanof et al. (2021). The hypothesis of emotional support (H4) was not verified, because this dimension was not statistically significant in this analysis, but this result does not imply that these channels do not have an explanatory power on the transmission of entrepreneurial intention.

As can be observed in the complete model (Model V), which considers the joint effects of all sociodemographic and behavioral variables, it can be highlighted that the magnitude of the verbal encouragement coefficient is 0.143, being higher than that of the instrumental support variable (0.099). This result demonstrates that the orientation/encouragement of parents (positive comments, advice, career accolades) had a moderately greater impact on the entrepreneurial intentions of their offspring than instrumental assistance (financial and material support, for example).

Table 2 presents the results of the estimation of Probit Regression with mean marginal effects.

Table 2
Probit regression considering the variables associated with parent support

Variables	Model I	Model II	Model III	Model IV	Model V
Male gender	0.0641***	0.0708***	0.0706***	0.0719***	0.0715***
	(0.00694)	(0.0141)	(0.0142)	(0.0143)	(0.0144)
Enterprising father	0.0347***	-0.0188	-0.0188	-0.00926	-0.00927
	(0.00948)	(0.0220)	(0.0222)	(0.0224)	(0.0224)
Enterprising mother	0.0131	-0.0351	-0.0319	-0.0254	-0.0254
	(0.0128)	(0.0245)	(0.0247)	(0.0249)	(0.0249)
Father and mother entrepreneurs	0.0358***	0.000849	-0.00134	0.000209	0.000131
	(0.0117)	(0.0237)	(0.0238)	(0.0239)	(0.0239)
Age	-0.000431*	-0.00151**	-0.00145**	-0.00213**	-0.00214**
	(0.000230)	(0.000724)	(0.000720)	(0.000931)	(0.000934)
Age2	0.00000025**	0.00000077**	0.00000074**	0.0000012**	0.0000012**
	(0.00000012)	(0.00000037)	(0.00000036)	(0.00000047)	(0.00000047)
Business area	0.105***	0.0803***	0.0800***	0.0805***	0.0804***
	(0.00833)	(0.0183)	(0.0185)	(0.0186)	(0.0186)
Engineering area	0.103***	0.121***	0.118***	0.114***	0.114***
	(0.00860)	(0.0163)	(0.0165)	(0.0166)	(0.0166)
Verbal Encouragement		0.00991	-0.00128	-0.00132	-0.00151
		(0.00689)	(0.00957)	(0.00970)	(0.00973)
Instrumental Assistance			0.0150	-0.00264	-0.00267
			(0.00967)	(0.0113)	(0.0113)
Career Modeling				0.0300***	0.0306***
				(0.00909)	(0.00937)
Emotional Support					-0.00186
					(0.00744)
Observations	20,350	4,905	4,826	4,762	4,762

• Standard error in parentheses. p<0.01, ** p<0.05, * p<0.1. Source: Elaborated by the authors.

The results of the base model (Model I), which does not control the variables associated with parents’ support, indicate that gender has a significantly positive effect. Thus, looking at the marginal effects, it can be said that men have a probability of having entrepreneurial intentions of approximately 6.41 percentage points more than women. In the other models, which include the variables of parental support, there was also greater entrepreneurial intention for male individuals.

The hypothesis of gender discrepancy (H6) is supported by this analysis. This result in the Brazilian sample may be related to cultural aspects of the country, since female participation in entrepreneurship is still moderately lower than that of men in Brazil, despite having grown lately (GEM, 2020). In many developing countries, gender stereotypes still prevail, and it is expected that women take care of their families instead of following professional careers (Moreno-Gómez et al., 2019).

Moreover, in model I, the role of the entrepreneurial father and entrepreneurial father and mother were statistically significant and positive, so that the probability of entrepreneurial intention increases by 3.47 percentage points if the individual has an entrepreneurial father and 3.58 percentage points if both parents are entrepreneurs (father and mother). These results support Hypothesis 1 (Having entrepreneurial parents increases the propensity of individuals to become entrepreneurs).

The isolated maternal influence was not confirmed in this model, which corroborates the results by Chlosta et al., (2012) and Sahinidis et al. (2019) who stated that the social transmission of entrepreneurial behavior has a positive impact when the father or both (father and mother) have occupations related to entrepreneurship, so the influences on the entrepreneurial intention of the children are distinct for the maternal and paternal models (Moreno-Gómez et al., 2019).

Regarding the dimensions of support of parents in the career, it was identified that the modeling in relation to the career has a positive and statistically significant effect at 1% of significance. This implies that the entrepreneurial intention increases by about 3 percentage points due to the increase in the perception of the individual about the parents as models of entrepreneurs. This result supports hypothesis 2 (Having a parental model (career-related modeling) increases the propensity to entrepreneurship) and demonstrates, for the Brazilian sample, the positive influence of parental inspirational models, in line with the evidence of other studies in the international literature (Chlosta et al., 2012; Criaco et al., 2017; Hoffmann et al., 2015; Moreno-Gómez et al., 2019).

In summary, the results suggest that having entrepreneurial parents increases the propensity of the individual to undertake, indicating the social transmission of entrepreneurial intention between generations. Studies such as those by Criaco et al. (2017), Hoffmann et al. (2015), Lindquist et al. (2015) and Moreno-Gómez et al. (2019, 2022) also showed the positive influence of parents, mainly paternal, on the probability of their children becoming entrepreneurs.

Table 3 presents the estimates of Multiple Linear Regression, using a comparison by gender and having Entrepreneurial Intention as a dependent variable. Four models were estimated to evaluate the effect of gender: the first of them evaluates the effect for men with an entrepreneurial father; the second for men with an entrepreneurial mother; the third, on the other hand, are women with an entrepreneurial father; and the fourth, women with an entrepreneurial mother.

Table 3
Multiple Linear Regression of Intergenerational Transmission of Entrepreneurship

Variables	Man with Entrepreneurial father	Man with Entrepreneurial mother	Woman with Entrepreneurial father	Woman with Entrepreneurial mother
Man * Entrepreneurial father	0.0254 (0.0498)
Man * Entrepreneurial mother		0.0634
		(0.0702)
Woman * Entrepreneurial father			-0.0269
			(0.0498)
Woman * Entrepreneurial mother				-0.0662
				(0.0702)
Entrepreneurial father	0.0413	0.0518**	0.0666*	0.0508**
	(0.0323)	(0.0249)	(0.0384)	(0.0249)
Entrepreneurial mother	0.0661*	0.0424	0.0642*	0.106*
	(0.0344)	(0.0434)	(0.0344)	(0.0557)
Father and mother entrepreneurs	0.109***	0.109***	0.109***	0.109***
	(0.0317)	(0.0317)	(0.0318)	(0.0318)
Male	0.163***	0.162***
	(0.0197)	(0.0188)
Female			-0.162***	-0.161***
			(0.0197)	(0.0189)
Age	-0.000543	-0.000539	-0.000524	-0.000520
	(0.000677)	(0.000677)	(0.000677)	(0.000677)
Age2	0.000000209	0.000000207	0.0000002	0.000000197
	(0.000000344)	(0.000000343)	(0.000000344)	(0.000000344)
Business area	0.230***	0.230***	0.231***	0.231***
	(0.0223)	(0.0223)	(0.0223)	(0.0223)
Engineering area	0.223***	0.223***	0.224***	0.223***
	(0.0226)	(0.0226)	(0.0226)	(0.0226)
Constant	-0.173***	-0.173***	-0.0107	-0.0111
	(0.0226)	(0.0225)	(0.0253)	(0.0251)
Observations	12,893	12,893	12,874	12,874
R-squared	0.024	0.024	0.024	0.024

• Standard error in parentheses. p<0.01, ** p<0.05, * p<0.1 Source: Elaborated by the authors.

For the estimated Multiple Regression model, the terms of interaction between the variable dummy for male gender and entrepreneurial father (Man * Entrepreneurial Father), male gender and entrepreneurial mother (Man * Entrepreneurial Mother), female gender and entrepreneurial father (Woman * Entrepreneurial Father) and gender and an entrepreneurial mother (Woman * Entrepreneurial Mother) were not statistically significant.

Regarding the Probit Regression with average marginal effects, as presented in Table 4, a positive and statistically significant effect was identified, at 5%, of the interaction between male gender and entrepreneurial father (Man * Entrepreneurial Father), with a coefficient of 0.100, which implies that the effect of having an entrepreneurial father is about 10 percentage points higher for men than for women. As can be observed, the influence of mother-son and mother-daughter dyads were not statistically significant.

Table 4
Probit Regression of Intergenerational Transmission of Entrepreneurship

Variables	Man with Entrepreneurial father	Man with Entrepreneurial mother	Woman with Entrepreneurial father	Woman with Entrepreneurial mother
Man * Entrepreneurial father	0.100** (0.0498)
Man * Enterprising mother		-0.0433 (0.0680)
Woman * Entrepreneurial father			-0.0989**
			(0.0498)
Woman * Enterprising mother				0.0456 (0.0680)
Entrepreneurial father	0.0460	0.0926***	0.146***	0.0936***
	(0.0343)	(0.0253)	(0.0367)	(0.0253)
Entrepreneurial mother	0.0341	0.0531	0.0357	0.0101
	(0.0341)	(0.0445)	(0.0341)	(0.0521)
Entrepreneurial father and mother	0.0951***	0.0956***	0.0966***	0.0971***
	(0.0313)	(0.0313)	(0.0313)	(0.0313)
Male	0.155***	0.174***
	(0.0202)	(0.0193)
Female			-0.157***	-0.176***
			(0.0202)	(0.0193)
Age	-0.00116*	-0.00115*	-0.00117*	-0.00117*
	(0.000613)	(0.000613)	(0.000614)	(0.000614)
Age2	0.000000663**	0.00000066**	0.000000671**	0.000000667**
	(0.000000309)	(0.000000309)	(0.000000309)	(0.000000309)
Business area	0.281***	0.281***	0.282***	0.282***
	(0.0225)	(0.0225)	(0.0225)	(0.0225)
Engineering area	0.275***	0.275***	0.275***	0.275***
	(0.0232)	(0.0232)	(0.0232)	(0.0232)
Constant	-0.494***	-0.503***	-0.339***	-0.329***
	(0.0226)	(0.0224)	(0.0251)	(0.0249)
Observations	20,350	20,350	20,313	20,313

• Standard error in parentheses. p<0.01, ** p<0.05, * p<0.1. Source: Elaborated by the authors.

As already mentioned, the results point to the fact that the paternal influence on the propensity to undertake is higher for male individuals than for females. Therefore, there is evidence that the similarity between the entrepreneurial model (father) and the observer (son) can influence the decision to undertake. However, the entrepreneurial mother model was not influential for female offspring, so the hypothesis of gender homophilia (H7) is not supported in the case of maternal influence, which can be justified by the fact that children often identify at a higher or lower level with the father or mother, or even do not identify themselves (Hopp et al., 2019; Moreno-Gómez et al., 2019, 2022).

These results differ, partially, from those obtained in studies conducted in other countries, such as those of Hoffmann et al. (2015), Lindquist et al. (2015) and Moreno-Gómez et al. (2019), which showed a higher probability of individuals being influenced by parents of the same gender, both in the father-son and mother-daughter dyad.

As highlighted by Staniewski and Awruk (2021), the influence of parents on the entrepreneurial career of their children is not consensual; that is, in this process of intergenerational transmission the development of psychological traits, which will serve as resources for future involvement in entrepreneurial activities, depends on the context and different channels of transmission, such as the attitudes of parents, the way of parental interaction, communication, as well as satisfaction with family life.

CONCLUDING REMARKS

The main objective of this research was to examine whether having entrepreneurial parents affects the children’s propensity to undertake, analyzing which are the main transmission channels, as well as whether gender homophilia plays a moderating role of such effect. The empirical evidence were conclusive about the differences in entrepreneurial activity between men and women. The results confirmed that the entrepreneurial intention can be conditioned by parental support, allowing to reaffirm that having an entrepreneurial father, as well as entrepreneurial parents (father and mother), generates an increase in the entrepreneurial intention of the individual. However, it was not possible to prove the isolated maternal influence. Moreover, with regard to gender homophilia, it was proven that the entrepreneurial father exerts greater influence for the sons than for the daughters.

This influence can be exercised through different channels associated with the support of parents. In the present work, verbal encouragement, instrumental assistance, and career-related modeling stand out as the main mechanisms. The initial findings of the study suggest that the parental influence on the entrepreneurial career of individuals may vary according to the models and attitudes of parents, the way parental communication is established, as well as financial/material incentive. In addition to the findings of this work, there was a gap in the national literature on the effect of these dimensions in developing markets, such as the Brazilian one. This is particularly critical when considering the importance of entrepreneurship for economic mobility in the Brazilian context, since the country has one of the highest economic inequalities in the world.

The results contribute to the literature on intergenerational entrepreneurship, emphasizing transmission channels and gender homophilia, thus corroborating previous studies. The conclusions imply that policies aimed at national entrepreneurship can be adapted to exploit the benefits inherent in parental support. Briefly and in other words, understanding the role of parents and their impact on their children’s entrepreneurial intention makes room for policy makers to use this positive intergenerational relationship to design strategies designed with a focus on parents, exploring this factor to stimulate nascent entrepreneurship, given that investing/supporting the entrepreneurial skills of parents can be a means to encourage the choice of entrepreneurial career by children. Such information can benefit policymakers in the planning and structuring of programs aimed at specific orientation of the entrepreneurial career, both at the individual and family level, highlighting the influence of factors related to the support of parents, as well as the moderating effect of gender.

In general, it is worth highlighting the dialogue between the results of entrepreneurial intention identified and the real entrepreneurial action, with emphasis on the conceptions of the data used in this study. As the data are secondary and the questionnaire explores the intention of university students to choose entrepreneurship as a career after training, it must be emphasized that the analysis is limited to the discussion about the influence of parental support on the intention to undertake, and the results do not allow to infer that this propensity will lead to the entrepreneurial behavior of these individuals. That is, that they were or will be effectively involved with entrepreneurial activities, either by opening a business or continuing the parents’ enterprises. Further research could expand the results but attempting a longitudinal study with this same group of respondents of the GUESSS Brazil survey, to verify whether the intention was effective, would be a difficult approach to operationalize due to the difficulty of contact, since there is no identification of the respondents in the questionnaire.

As the main limitation of this study, it is noteworthy that cultural aspects were not included in the model analyzed, which could characterize parents (age, education, religion, among others) and contribute to the expansion of discussions. Thus, in terms of future research, it is suggested that other investigations could explore these and other explanatory variables, so that the estimated effects could differ in comparison with the sample of this study and with approaches carried out in other countries.

ACKNOWLEDGMENTS

This work was carried out with the support of the Coordenação de Aperfeiçoamento de Pessoal de Nível Superior- Brazil (CAPES) - Financing Code 001.

• [Translated version] Note: All quotes in English translated by this article’s translator.

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Publication Dates

• Publication in this collection
  08 May 2023
• Date of issue
  Mar-Apr 2023

History

• Received
  02 May 2022
• Accepted
  28 Oct 2022