Family Entrepreneurship: Entrepreneurial Values Transmission and Motivation in Ethiopian Enterprising Families
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Date
2025-07-12
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A.A.U
Abstract
Molded by the interaction of family values and entrepreneurial motivation, family entrepreneurship plays a crucial role in the global economy. While much research is characterized by lack of inclusiveness that focuses on Western context, less is known about family entrepreneurial value transmission and motivation in non-Western settings, particularly in Ethiopia. As a result, this study explores how entrepreneurial values transmitted across generations and motivations developed in Ethiopian family businesses using both systematic literature review and qualitative case studies. The findings in this study reveal that value transmission is bidirectional, with both older and younger generations influencing each other. Furthermore, external factors such as clan networks, ethnic ties, and community relationships also shape entrepreneurial values and transmission. A unique discovery by this study, an aspect rarely explored in Western studies includes early child out-migration and Equib as a transmission mechanism. In addition to that, unlike the traditional oversimplified dichotomy between necessity and opportunity motives which neglects the complex interplay of entrepreneurial motives, Ethiopian family businesses are driven by a mix of financial, socioemotional, prosocial, necessity, and opportunity-based motivations. Moreover, beyond financial goals, maintaining family unity, and gaining community respect, shape entrepreneurial decisions. Furthermore, family capital-social, cultural, and human—plays key roles in influencing entrepreneurial motivation dynamics. This study introduces a framework integrating bidirectional family entrepreneurial value transmission, motivation and family capital, offering insights for policymakers, business owners, and researchers working on sustaining family businesses in Ethiopia and beyond.
Keywords: family entrepreneurship, family entrepreneurial values, family entrepreneurial value transmission, family entrepreneurial motivation, necessity motives, opportunity motives, financial motives, prosocial motives, socio-emotional motives and family capital.