Previous Chapter Chapter 4: Household Structure Next Chapter
Chapter 4: Household Structure
Household structure is a broader unit of analysis than family structure. Members living in a household may or may not be family members but typically are part of a nuclear or extended family. Household structure has an impact on venture creation because it is a direct determinant of the starting resource base for the entrepreneur. Every entrepreneur begins with an idea and personal resource endowment (e.g., education, experience, contacts, capital) that is the building block for launching the venture (Brush, Greene, & Hart, 2001). During the nascent stages of organizational formation, personal resources are transformed into the venture's resources. In this process, the initial resource endowments coming from the entrepreneur's family and household structure can influence the venture's resource base.