Born Entrepreneurs?
People often use the phrase “born entrepreneurs” when referring to people who seem to have something that makes them innately entrepreneurial. Most of this discussion is casual and doesn’t really consider whether some people are, literally, born with a genetic make-up that makes them more likely than other people to start businesses. But recently, with some colleagues in the UK, I examined whether genetics affects the odds that people will start businesses. I found that the answer is “yes.”
We used quantitative genetics techniques to compare the entrepreneurial activity of 870 pairs of identical and 857 pairs of same-sex fraternal twins. Because the genetic composition of identical twins is 100 percent the same, and the genetic composition of fraternal twins is 50 percent the same, researchers use the degree to which the pairs of twins are the same on various dimensions - personality, religious beliefs, temperment, political leanings, and so on - to look at the portion of the differences between people that is influenced by genetics.
In our case, we looked at different measures of entrepreneurial activity. We found that between 37 and 42 percent of the differences between people in their tendency to have started businesses; been self-employed; been owner operators of businesses; and engaged in the start-up process, is accounted for by genetic factors.
This is only one study. It doesn’t say anything about what genes might affect our tendency to start businesses, or how many genes are involved, or the ways that genes affect our tendency to become entrepreneurs. But, at least to me, it’s fascinating to think that some part of the puzzle of why some people become entrepreneurs and others don’t is explained by our genes.
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About the Author: Scott Shane is A. Malachi Mixon III, Professor of Entrepreneurial Studies at Case Western Reserve University. He is the author of seven books, the latest of which is Illusions of Entrepreneurship: The Costly Myths that Entrepreneurs, Investors, and Policy Makers Live By. He is also a member of the Northcoast Angel Fund in the Cleveland area and is always interested in hearing about great start-ups. Take the entrepreneurship quiz.
February 25th, 2008 at 10:11 am
Very interesting. It doesn’t surprise me that genes are a factor in business ownership. Some people have that extra drive and passion and it is interesting to hear that your genetic backround may have something to do with it.
February 25th, 2008 at 10:51 am
I still don’t think this makes it OK for people to blame their genes for their lack of courage and enthusiasm to go out on their own.
I think courage, tenacity, positive thinking, and every other trait needed to be successful as an entrepreneur is developed, regardless of how much you’re born with.
February 25th, 2008 at 6:25 pm
Fascinating article! I definitely believe that our genes contribute to entrepreneurial tendencies, but an even bigger factor, in my opinion, is the way we were raised, or even more importantly, have we had entrepreneurial parents.
My grandmother and father are entrepreneurs, and it has definitely led me to value the entrepreneurial mindstate and lifestyle much more.
Now, I’ve got the bug!
February 25th, 2008 at 6:58 pm
Scott,
So, is it a special gene that is “programmed” to be more entrepreneurial? How about the aspect of free will?
Best Premies,
P.S. I have finished reading your book.
February 25th, 2008 at 8:19 pm
Martin,
At this point, no one has identified any specific genes associated with entrepreneurship. It is very likely that there will be many genes that affect the propensity to become entrepreneurs because all the research on any kind of behavior indicates that many genes are involved.
The genes are almost certainly going to affect propensities. No one would be “programmed” to be an entrepreneur. Rather the genes would affect the probability that someone would start a business.
Also, the genes are almost certainly not unique to entrepreneurship. Our genetic make-up as humans hasn’t changed very much since human beings started civilizations and engaged in business for the first time. So it would likely be something that affects other activities as well.
One possibility is the set of genes that make some people more likely than others to seek novelty. We have evidence of particular versions of genes that affect the tendency of people to seek novelty as measured by psychological scales. We also have evidence that some portion of the differences between people in the tendency to start businesses, which comes from our genes, operates through this psychological characteristic. So some people might have a greater genetic predisposition for novelty, while others have a greater genetic predisposition for routine.
Some of those who have the greater genetic predisposition for novelty might hang glide, others might travel, still others might start businesses and so on. Why some of these people start businesses and others travel might result from the interaction of the predisposition and the situations and environment that affect a person.
So free will is still here. All the genetic argument means is that someone might be more likely to start businesses because of the genes that they are born with, just like someone might be more likely to play basketball because they are born with genes that increase the odds that they will be tall.
February 26th, 2008 at 4:09 am
Scott,
Thanks for your reply. I have to “chew” this issue more in the future.
February 28th, 2008 at 6:01 pm
Genes or no genes, success is achieved with focus, dedication, belief and a solid plan. Let’s not overlook these points.
February 28th, 2008 at 9:11 pm
Great genes help, but wanting it bad enough and a lot of believing in yourself is a big plus. It’s called “positive attitude”.
February 29th, 2008 at 6:38 am
All very interesting points. I would only like to add that researchers have found that our genes influence all of the following: achievement orientation; dedication and persistence; self-efficacy, self-confidence and belief in our selves; and optimism and a positive attitude. So our genes help those things to help.
March 31st, 2008 at 12:20 pm
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