Entrepreneurship – do genes play a part?

February 21, 2011 · 17 comments

Why are some of us entrepreneurs and others not? Is it only the environment we grow up in that matters or do our genes have a part to play as well?

entrepreneurship and genes

Is it possible to learn to risk everything you have without inheriting the genes that gives you an entrepreneurial mind?

Professor Scott Shane of Case Western Reserve University, is one scientist who claims that people with parents with certain genetic components are more likely to become entrepreneurs.

To what extent do genes matter?

In his genetic research on identical twins, who share 100 percent of their genes, and fraternal twins, who share 50 percent of their genes, professor Shane concluded that identical twins were more likely to share the genetic factors that enable entrepreneurship. His conclusion is that 30-40% of entrepreneurship is inherited.

“But even when a person has the entrepreneurial innate makeup that makes him/her more likely to be an entrepreneur, genes interact with environmental stimuli”, professor Shane says.

Combination of nature & environment

In other words having proved that genes play a part it is still difficult to determine to what extent they shape an individual to become an entrepreneur. Without the right environment the same person may not have become an entrepreneur? Growing up in an atmosphere adverse to risk taking, creativity and innovation the same person would probably never have become an entrepreneur.

Childhood influences

My father was an entrepreneur and I don’t know how many times my mother told me I’m just like him. But if they had raised me to believe new opportunities and developing projects was wrong would I still have had the mind of an entrepreneur? Or even worse if they had discouraged curiosity, vision and persistence.

According to Professor Shane genetic factors raise the odds of a person becoming an entrepreneur but environmental factors are more crucial, and I tend to agree with him. Not least since we are able to impact what and who we surround ourselves with. It is up to us to determine our future, regardless of what genes we have inherited. Entrepreneurial genes facilitate, but unless we really make an effort and are persistent we will never succeed no matter how excellent our genes are.

The difference between having an entrepreneurial mind and carrying out entrepreneurial activity

Anyone can learn how to carry out entrepreneurial activity.  But how do you learn to have an entrepreneurial mind? Is it really possible to learn to risk everything you have in order to achieve something you passionately believe in? Because that’s what having an entrepreneurial mind entails. One headhunter I know once said to me that when someone tells them he is an entrepreneur he asks him if he is prepared to risk losing his house and everything he ownes in order to succeed? If the answer is no, which it is in most cases, he hasn’t got an entrepreneurial mind but is carrying out entrepreneurial activity which is different.

What your opinion? Do our genes have a part to play or can we learn to develop an entrepreneurial mind anyway? Learn to have the strength and courage to take risks which is crucial for an entrepreneur. What role do our genes play in this? Does a person need to be programed genetically to have the strength and courage to risk everything they have?

Photo: Flickr – Pacific Northwest National Laboratory

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1 Best Entrepreneurship MBA May 13, 2011 at 9:28 pm

Gene, in my observation, actually play a part in entrepreneurship. Most of the businessmen have children who are also good in business.

2 Donina Ifurung February 22, 2011 at 7:45 pm

What an interesting post! There’s a saying, “You either got it or you don’t”. I believe that genes play an important role in the “drive” part of the entrepreneurial spirit, but that personal motivation must come alongside of what nature has given. I agree with Keyuri and Linda. A balance of both genes and desire may be key foundations being an entrepreneur. It’s up to us to build and nurture it.

3 Catarina Alexon February 23, 2011 at 7:31 am

Thanks Donina. Agree with you that if someone becomes an entrepreneur or not is definitely a combination of nature/genes and environment. Without the combination you will not become an entrepreneur regardless of what genes you have. And environment alone is not enough either.

4 Alex@Jocuri February 22, 2011 at 6:24 pm

I think that everything can be learned but everyone has it’s limits. Does entrepreneurship depends on your genes? Well I would say only an half yes.

Mainly because actually every men or women is that same at birth, they are practically empty blanks waiting to be filled with information, emotions etc.

Usually all the traits, character etc are qualities you get in life and usually all those that are need for entrepreneurship will be developed early in life, but also later on.

But, there is a genetic problem too. Intelligence usually is predetermined when you are still in the womb and the mental capabilities of every man differs, so I guess both genetics and life have to combine themselves just right to instill the right skills in a man who wants to be an entrepreneur.

5 Catarina Alexon February 23, 2011 at 7:34 am

Glad we agree Alex that it’s a combination of nature & environment.

6 givejonadollar February 22, 2011 at 2:32 am

Yes, genes play a part, without a doubt in my mind. But, of course, circumstances and environment play their part as well.

Of course, these unique mixtures create all kinds of different people and passions. Thank goodness we are all not the same. :)

7 Catarina Alexon February 22, 2011 at 11:44 am

Amen.

8 LindaCSmith February 21, 2011 at 6:34 pm

This is a pretty interesting question as I happen to think maybe genes might actually have something to do with it. In my family, the women have been entrepreneurs back to my grandmother. My grandmother owned a baby clothing store. My mom built her own bookkeeping and tax business. I’ve always sought to make my own way, doing my own “thing” and my older daughter does the same. Genetic predisposition or role models? Hard to know.

9 Catarina Alexon February 22, 2011 at 6:58 am

Agree with you Linda. Call it genes, nature or whatever.

We inherit abilities from our parents and relatives and why should the qualities that enable an entrepreneurial mind be different?

Out of three children I was the only one who inherited the genetic predisposition from daddy. On the other hand I’m also tone deaf. Despite that I can learn to sing and play musical instruments. But I will never be as good as someone with a musical ear.

In my humble opinion it’s a combination of nature & evironment.

10 Tia Peterson February 21, 2011 at 5:39 pm

I never thought about whether or not genes played a role. I suppose they do, because we are all a bit entrepreneurial and all of the children (me and my bros and sisters) crave and thrive in leadership. Environment must also play a role, since one of my brothers is adopted but we’ve had him nearly since birth.

11 Catarina Alexon February 22, 2011 at 7:09 am

Good point Tia.

What’s most fascinating is what the definition of an entrepreneur is. Is it someone who carries out entrepreneurial activity or someone with an entrepreneurial mind? Almost anyone can learn to carry out entrepreneurial activity. But how do you learn to risk everything you have in order to achieve something you passionately believe in? That’s where where your nature and what you have inherited from your parents and relatives come in.

Nowadays almost everyone considers themselves entrepreneurs. It seems people believe that only entrepreneurs have ideas and are successful in business, which is not correct. Entrepreneurism is also associated with people in business only. Also wrong since you find entrepreneurs in all walks of life.

What’s interesting with this topic is also that, generally speaking, people believe genes play a part or not depends on if they believe, rightly or wrongly, that they have those genes. The ones who don’t believe they have them are adamant that genes don’t play a part. One guy who was really honest wrote “I’m not sure I like the idea of genes playing a part, what if I don’t have those genes?”.

So what is the definition of an entrepreneur? Someone who carries out entrepreneurial activity or has an entrepreneurial mind? The negative aspect of having an entrepreneurial mind is often forgotten. People with entrepreneurial minds apparently lose everything they have on average 3.1 times in life.

12 Tia Peterson February 22, 2011 at 11:56 am

Great questions. I think it is the mind only. The body can be taught to do things, and entrepreneurial minds can be lazy, too. My sister and father (and grandmother and grandfather) are/were musicians, and to me, they are entrepreneurs. My little brother is in pilot training, and I feel the same way about him. I do believe it is a mindset and that leadership and independence and self-sufficiency play into that.

Even those who work for others can have entrepreneurial spirits. It never leaves you. Some people choose to act on it in terms of income, and others do other things such as start missions teams or volunteer for this or that.

Good conversation, Catarina!

13 Catarina Alexon February 22, 2011 at 12:35 pm

Agree with you completely Tia. And you are spot on that entrepreneurial minds can be lazy. Daddy was, I am and my nephew who’s got an entrepreneurial mind is as well. Hadn’t given that aspect a thought until you just mentioned it. Thanks!! :) )

What I love about this site is that so far nobody has come forth and said genes have nothing to do with it. That’s unusual and indicates that the members have high self esteem and are honest. Super!!

14 Keyuri Joshi February 21, 2011 at 5:17 pm

Very thought provoking post. Good nurturing will bring out what nature blesses us with.

15 Catarina Alexon February 22, 2011 at 8:40 am

Good point Keyuri. Nature & environment combined bring out the best in us. However, we will never be excel in something nature didn’t bless us with. A good example is what I mention in another comment that I’m tone deaf. What I’m trying to say is that maybe parents should try to develop the abilities their children have been blessed with and not abilities where they are at a disadvantage? Do you talk to parents about that? Would be interesting to hear what they say if they have, say, a tone deaf child that they would like to become a singer.

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