Abstract
This chapter empirically examines the significance of an individual's family climate and its six dimensions (open communication, intergenerational attention, intergenerational authority, emotional cohesion, cognitive cohesion and adaptability) in driving entrepreneurial self-efficacy. Responses to a structured questionnaire were collected from 1123 students from all over India through email. A stepwise regression analysis was performed using SPSS 26.0 to measure the strength of relationship between family climate dimensions and entrepreneurial self-efficacy of an individual. Additionally, a bivariate regression analysis was performed to examine the overall influence of family climate on entrepreneurial self-efficacy. The relationship between family climate (FC) and entrepreneurial self-efficacy (ESE) was found to be positive and statistically significant. Three dimensions of FC (i.e., open communication, emotional cohesion, and intergenerational attention) emerged as significant predictors of an individual's entrepreneurial self-efficacy.
TopIntroduction
Post-independence, India has demonstrated resilience in recovering from various economic setbacks through progressive governmental policies. However, the persistent challenge of high unemployment rates continues to baffle policymakers. In light of the post-COVID-19 unemployment rate of 21.3% (CMIE, 2020) and the country's population of 1405.21 million (IMF, 2022), there is an urgent need to focus on establishing sustainable livelihood opportunities. The existing literature emphasizes the significant role of entrepreneurship in addressing the unemployment problem and driving economic development and growth in nations (Wosiek, 2023; Wiramihardja et al., 2022).
To foster entrepreneurship in a vast developing nation like India, it is crucial to cultivate Entrepreneurial Intention (EI) and its determinants among the youth (Tingting et al., 2022). Extensive research highlights a multitude of factors that influence an individual's EI. This scholarly work specifically focuses on Entrepreneurial Self-Efficacy (ESE), which has been identified as one of the significant antecedents of EI (Christensen et al., 2023; Lin et al., 2023; Wang et al., 2023). The Theory of Planned Behavior (Ajzen, 1991) and Shapero's Entrepreneurial Event Model (Shapero, 1984) are two notable conceptual frameworks that establish the positive impact of ESE on an individual's EI (Krueger et al., 2000).
ESE can be defined as an individual's belief in their ability to successfully initiate and operate a business venture (Chen et al., 1998). It is a psychological construct that reflects an individual's confidence in their capacity to identify entrepreneurial opportunities, mobilize resources, and overcome challenges in the pursuit of their entrepreneurial goals (António Porfírio et al., 2023).
Ample scholarly works have established that India operates as a collectivist economy, where social relationships and interdependence play a significant role (Sinha et al., 2002). Consequently, the influence of Family Climate (FC) on an individual's ESE (ESE) becomes inevitable within this cultural context (Park and Kang, 2022; Shao, 2022).
Family Climate, as described by Dandagal and Yarriswami (2017), refers to the environment in which a child grows physically, emotionally, and mentally. Within the literature, evidence highlights the crucial role of a favorable family climate in developing an individual's motivation (Cantero-García & Alonso-Tapia, 2018) and self-efficacy (Ciucci et al., 2018; Lv et al., 2018).
Considering that the concept of ESE stems from the broader construct of self-efficacy (Hsu et al., 2019), scholarly evidence suggests that the determinants of general self-efficacy also impact an individual's ESE (Jansen et al., 2015). Therefore, understanding the influence of Family Climate on ESE becomes crucial in comprehending the broader factors that shape entrepreneurial self-beliefs.
By exploring the relationship between Family Climate and ESE, this research aims to contribute to the existing literature on entrepreneurship in India. Recognizing the collectivist nature of the Indian economy and the potential impact of family dynamics on individuals' entrepreneurial aspirations and self-efficacy, this study seeks to shed light on how family climate can shape and influence ESE.
Key Terms in this Chapter
Intergenerational Authority: Intergenerational Authority refers to the power dynamics and hierarchical relationships that exist between different generations within a family. It encompasses the ways in which authority, decision-making, and responsibility are distributed and exercised across generations.
Emotional Cohesion: Emotional Cohesion refers to the level of emotional connection, support, and shared affective experiences among family members. It represents the degree to which family members are emotionally bonded, attuned to each other's emotions, and demonstrate a sense of emotional closeness and solidarity.
Open Communication: Open Communication refers to a communication style characterized by honesty, transparency, and a willingness to express thoughts, feelings, and opinions without fear of judgment or reprisal.
Intergenerational Attention: Intergenerational Attention refers to the degree of focus, interest, and investment that family members across different generations give to one another. It pertains to the level of awareness, understanding, and responsiveness individuals from different age groups demonstrate towards each other's needs, concerns, and experiences.
Cognitive Cohesion: Cognitive Cohesion refers to the degree of shared beliefs, values, and cognitive frameworks among family members. It represents the extent to which family members have a shared understanding, interpretation, and perception of the world around them.
Adaptability: Adaptability refers to the family's ability to adjust, cope with, and effectively respond to changing circumstances, challenges, and stressors. It represents the family's capacity to modify its structure, roles, rules, and communication patterns in order to accommodate new situations and demands.
Family Climate: Family Climate refers to the patterns of communication, interaction, and relationships among family members.