What prompts someone to found a start-up? A new study by the Treasury Department found that someone’s parents’ income is the factor most correlated with entrepreneurship, with higher wealth associated with a higher likelihood of being a founder of a start-up.The study analyzed a unique one Record related to Israeli entrepreneurs aged 25 to 35 and recorded a person’s ability to learn – as measured by academic performance and standardized test scores – as well as demographic data about their parents. “A strong economic base can benefit those interested in founding a start-up that offers an economic safety net in the event of a failure,” says the study. Additionally, individuals with strong economic backgrounds are likely to be exposed to more messages about entrepreneurship and innovation, thereby modeling their career paths. A significant correlation was also found between parental education levels and entrepreneurship. This connection is even stronger when the parents have studied science or technology. Interestingly, there was no difference whether the father or mother was the one who came from this background. Those whose parents ranked in the top 20% of income but scored the bottom 50% in math on the Meitzav proficiency test had a higher chance of becoming entrepreneurs than those whose parental income was below the bottom 60% but below in math the top 10%. “The key lesson from this study is that Israel has a reservoir of unrealized potential,” said Yona Hackett, a chief economist at the Treasury. “We have a lot of kids who are very talented and it’s a shame to waste that.” Research like this is an early part of a process that can eventually turn into government planning, he explained.
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if (window.location.pathname.indexOf (“656089”)! = -1) {console.log (“hedva connatix”); document.getElementsByClassName (“divConnatix”)[0].style.display = “none”;} Entrepreneurship has very little to do with being smart, according to the study. The learning skills component only explained about 11% of the gap in the likelihood of being a start-up entrepreneur among people with different economic backgrounds. However, according to the report, the ability to learn quickly is an essential factor in job search in the hi-tech sector. According to the statistical model, ability to learn accounted for 33% of the income bracket gap to work in high-tech. The report found that understanding these factors is more important than ever as the coronavirus crisis shifts the Israeli economy more towards hi-tech. “In this context, understanding the mechanisms that lead to the ‘formation’ of high-tech entrepreneurs is of great importance as they are a major engine of growth for the entire sector,” the report said.
