Genetics Causes Half Of Entrepreneurship

The authors studied self-employment among 609 pairs of identical twins, and compared it to self-employment among 657 pairs of same-sex fraternal twins in the U.K. Identical twins share 100% of their genetic composition, while fraternal twins share about 50%, on average. Thus differences in the rates at which pairs of identical twins both become entrepreneurs and the rates at which both members of fraternal twins both become entrepreneurs are attributable to genetics. "One can look at the patterns of concordance (the numbers of pairs of twins in which both members are or are not entrepreneurs) and reasonably infer that genetic factors account for the differences," says Shane.

The authors propose several methods by which genetic factors might influence people's tendency to become entrepreneurs. For example, genes may predispose an individual to develop traits such as being sociable and extroverted, which in turn facilitate skills such as salesmanship, which are vital to entrepreneurial success.

In addition, genes have been shown to affect the level of education an individual receives, and more highly educated people are likelier to become entrepreneurs because they are better able to recognize new business opportunities when they arise.