July 10, 2024

How Family Background and Education Influence Startup Founders’ Paths

How Family Background and Education Influence Startup Founders' Paths

The Key Role of Family Background in Entrepreneurial Success

A recent study from Bertelsmann Stiftung, conducted in collaboration with the Startup-Verband , reveals that family background, particularly parents’ education levels and career paths, significantly shapes startup founders. Surveying 1,800 startup entrepreneurs, the findings highlight how parents serve as role models, encourage their children to start businesses, and provide essential networks.

Parents’ Educational Background

Six out of ten startup founders come from households with at least one parent holding a university degree. Specifically, 53 percent of fathers and 38 percent of mothers of these founders have academic qualifications. This contrasts sharply with the general population aged 55 to 74, where only 21 percent of men and 15 percent of women hold academic degrees. Among the founders themselves, the percentage rises to 85 percent.

Parents’ Professional Background

Parental self-employment also plays a crucial role. 38 percent of founders had at least one parent who was self-employed, and 24 percent had parents who managed businesses with employees. These entrepreneurial role models often act as gatekeepers, providing access to valuable networks.

Challenges for Founders Without Family Support

However, the study also shows that innovators without this family background face greater obstacles. While founders from entrepreneurial families benefit from parental networks and support, those from civil servant or working-class families do so less frequently. Only 14 percent of founders without entrepreneurial parents had contact with other entrepreneurs through their family.

Resources and Financial Support

Economic resources are another key factor. 70 percent of founders with entrepreneurial parents can rely on financial support from their parents in challenging times. This figure drops to 57 percent for founders with parents who are civil servants and only 14 percent for those from working-class families. Additionally, founders with entrepreneurial parents more frequently secure external capital and employ more staff.

Unlocking Potential and Promoting Equal Opportunities

Despite different starting points, a common thread among respondents is their ambition: nine out of ten founders plan to start another company. This underscores that successful startups can be a lever for greater economic equality. Franziska Teubert , Managing Director of the Startup-Verband, emphasizes the importance of role models and networks: “To unlock our potential, we should make entrepreneurial role models more visible in schools and society to inspire more young people to start businesses.”

Julia Scheerer from the Bertelsmann Stiftung adds, “It’s crucial to lower the barriers for innovators without a family entrepreneurial background to ensure equal opportunities for all.”

And this is why DigitalValley was founded: to reduce barriers, provide access, and enable feedback from real experts for founders!

Innovation. For Anyone. Anytime. Anywhere.

get a copy of the study here: https://www.bertelsmann-stiftung.de/de/publikationen/publikation/did/xxxxxx

In this article:
The Key Role of Family Background in Entrepreneurial Success A recent study from Bertelsmann Stiftung, conducted in collaboration with the Startup-Verband , reveals that family background, particularly parents' education levels and career paths, significantly shapes startup founders. Surveying 1,800 startup entrepreneurs, the findings highlight how parents serve as role models, encourage their children to start businesses, and provide essential networks.
Share on social media:
Facebook
Twitter
LinkedIn
Telegram