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A gene for entrepreneurship?

The Jennings: A family of entrepreneurs. From left, Charles, Christine, Nayana and Faith.

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Faith and Nayana, decked out in their costumes as dancers of MarchFourth Marching Band, the business they founded.

TEXT OF STORY

Kai Ryssdal: This was news to me, but people who study these sorts of things have apparently known for a good, long time that entrepreneurship tends to run in families. Mom starts a software firm. Dad launches maybe an environmental-marketing business, and chances are pretty good that at least some of the kids are going to want to work for themselves when they grow up. The question researchers are now asking is nature or nurture? Could there actually be an entrepreneurial gene that predisposes somebody to the startup lifestyle?

From the non-hereditary Marketplace Entrepreneurship Desk at Oregon Public Broadcasting, Mitchell Hartman reports.


MITCHELL HARTMAN: Meet the Jennings family of Portland. They're an entrepreneurial geneticist's dream.

Dad, age 61.

CHARLES JENNINGS: I'm Charles Jennings. I've been an entrepreneur since 1970. I've started over 20 companies. One has gone public, another was sold for $250 million, and I've had my failures.

Mom, age 60.

CHRISTINE JENNINGS: I'm Christine Jennings, my first business was called Honey Treats.

And their two grown daughters.

FAITH: My name is Faith Jennings. I tried several different business models, and finally hit on one that worked a few years ago, Faith Jennings Designs.

NAYANA: I'm Nayana Jennings, and I started my first company on March 4, 2003, and the business is MarchFourth Marching Band.

The sisters are dancers and part-owners in the 40-piece drum-and-brass band. It tours worldwide. Nayana also has a marketing business. Faith designs a line of hats and sweaters.

SCOTT SHANE: One of the things we've known for years is that the children of entrepreneurs are much more likely than anybody else to become an entrepreneur.

Scott Shane is a business professor at Case Western Reserve and author of the new book "Born Entrepreneurs, Born Leaders: How Your Genes Affect Your Worklife." He says until now, most researchers have considered entrepreneurship something that people learn.

SHANE: The parents are putting them in touch with certain kinds of people that have financing and customers and suppliers and so forth. Nobody ever said, "Well, maybe it's because there's something innate and that's being passed on from parents to children."

Shane argues people who launch businesses tend to share certain inherited traits: like independence, tolerance for risk, ability to recognize opportunity, and leadership. He's even put a hard number to "nature" versus "nurture."

SHANE: About a third to 40 percent of the tendency to be an entrepreneur is innate.

Knowing which genes encourage entrepreneurship, and who has them, could help educators design better programs to spur business-creation. It could even help venture capitalists pick whose startup to fund, though there's no guarantee the genes actually lead to success.

Still, many researchers doubt we'll ever be able to pinpoint exactly what role environment and genes play in raising up entrepreneurs.

CHARLES: I must have been born with that instinct to change the world, to shake things up.

Charles Jennings launched his first enterprise -- a statewide student association in California -- at age 16. He's on year nine of his latest startup. It develops communication systems for first-responders. Jennings' parents were business owners. His grandfather chased down outlaws with Wyatt Earp.

CHARLES: We're a family of risk-takers, and we're willing to try to create something new.

Even when the risk is going broke, says daughter Nayana.

NAYANA: I do remember the occasional strife in the family about how are we going to make ends meet. We're at the bottom of the barrel. And there was always some new opportunity that came along.

Another entrepreneurial trait the Jennings have in spades? Confidence. Even over-confidence.

NAYANA: There's a stick-to-it-iveness to go beyond the point where maybe you should have let the business fail. And keep with it long enough for the times to catch up with the idea.

Of course, all of this could be learned from mom and dad, rather than passed on through their genes.

Except, did I mention...Faith and Nayana are identical twins? Who have pursued more or less identical entrepreneurial paths for the past 20 years.

There's also an older sibling, says mother, Christine.

CHRISTINE: Their brother, who is not in the least bit entrepreneurial. He went to college, he got a job, he got another job. And I doubt that he will ever work for himself.

In a family full of entrepreneurs, that might be the most rebellious act of all.

I'm Mitchell Hartman for Marketplace.

About the author

Mitchell Hartman is the senior reporter for Marketplace’s entrepreneurship desk and also covers employment. Follow Mitchell on Twitter @entrepreneurguy

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Heather Margolis's picture
Heather Margolis - Mar 8, 2010

As a child I was surrounded by entrepreneurship though some were examples of how 'not' to run a company. I always knew I wanted to work for myself but it really took getting my MBA at Babson for me to be able to do that successfully. I started my consulting firm in "The Great Recession of 2009" and had a great year. Had I not gone through the program I wouldn't have had the fundamentals, the confidence, or the network to get me to where I am.

Andy A's picture
Andy A - Mar 7, 2010

Very interesting story. The research underlying some of this is fascinating.

Leigh-Anna Rubio's picture
Leigh-Anna Rubio - Mar 6, 2010

I was quite disappointed in this story; however, I am slightly encouraged by Mr. Shane's clarification that this research will be used to understand environmental factors, posted above. I feel strongly believe that in future reports, related to this or similar topics, that the weight and impact of environmental factors be stressed. It is irresponsible, knowing the disparities associated with wealth and business ownership, to emphasize genetic factors only (or I would suggest - at all).

Scott Shane's picture
Scott Shane - Mar 6, 2010

Because this story is about my research, I'd like to clarify what I said and what was added by the journalist. Let me start with the title. I think that's Marketplace's marketing. There's no gene for entrepreneurship. That line of thinking doesn't make any sense. I explained that in the interview, but it didn't make it into the story. There's a blog in biopoliticaltimes that does a pretty good job summarizing what I have written on this topic (and said in the interview) and what Mitchell Hartmann added. http://www.biopoliticaltimes.org/article.php?list=class&class=20&qty=4 The blog post quotes one of my articles as follows: "we also are not suggesting that there is a specific gene for entrepreneurship. Entrepreneurship is a complex phenotype, and it is very unlikely that there is a strong association between one particular gene and the tendency to engage in it.Moreover, the relationship between specific genes and the tendency to engage in entrepreneurship is likely to be quite complex, given the length of the causal chain from genes to entrepreneurial activity. Rather, we propose that the effect of genes on sensation seeking is likely to be epistatic; multiple genes may interact with each other in order to increase the likelihood for a person to be sensation seeking." In our research, my colleagues and I have shown that the tendency to be an entrepreneur is heritable - there is a genetic component to it - and some of the genetic effect operates through the personality trait of sensation seeking. (We show evidence of genetic effects on entrepreneurial performance and their influence through mechanisms other than the personality trait of sensation seeking as well.) This evidence was gathered through standard twin research designs. We believe that this research effort is useful because someday we would like to identify the environmental conditions that interact with genetic predispositions to affect the odds people become entrepreneurs. This is similar to research that looks at how innate predispositions to be a leader interact with situations people are in and results in the adoption of leadership roles. All of this is discussed in the book. The nuances of twin research on entrepreneurship gets lost in a short radio piece on the topic. But there is a good amount of research that shows that genetics impacts many aspects of organizational behavior.

Andrew Smith's picture
Andrew Smith - Mar 6, 2010

This is a really interesting article. I guess it is a lot to do with mindset. If you are raised and conditioned by parents with an entrepreneur mindset then that is likely to affect and impact on your own beliefs. Im not personally from a family of entrepreneurs but I still have the passion and drive to make my business a success. My influences must come from somewhere else I guess!

Barry Hilton's picture
Barry Hilton - Mar 4, 2010

Scott Shane is a quack. Dishonest academic, just trying to sell books. His BusinessWeek articles are equally garbage. Shame on you for airing this garbage

Victoria Posner's picture
Victoria Posner - Mar 4, 2010

Clearly neither Mitchell Hartman nor Scott Shane have read Pearl Buck's novel The Good Earth!

M. Brian Mills's picture
M. Brian Mills - Mar 4, 2010

Marketplace should have read this article before airing this story:
http://techcrunch.com/2010/02/27/can-entrepreneurs-be-made/

Joe Zen's picture
Joe Zen - Mar 4, 2010

This is a story only entrepreneurs will get. Even then it's annoying when there's not more hard science quoted with science related articles. And any time someone suggests that we might be hard wired to do certain things all the American-nurture-you-can-change-the-stars-if-you-just-believe morons raise their protest signs.

RJ Holden's picture
RJ Holden - Mar 4, 2010

This is the same question of nature versus nurture. Some people might have the nature instinct, but without a nurture support from people around him/her they won't act on that nature instinct. Isn't that true with all of life, whether it is entrepreneurship or something else.

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