Does Originating From A Wealthy Family Affect Entreprenurial Performance? A Thesis Investigating Norwegian Entrepreneurial Businesses

Abstract

In this paper, we delve into several questions regarding wealth and entrepreneurial performance in Norway. Specifically, we investigate whether or not entrepreneurs that originate from wealthy families perform better as entrepreneurs, than those that do not come from wealth. We utilize data from the Center of Corporate Governance Research at BI on Norwegian entrepreneurial firms from the period 2000 to 2015. We supplement the empirical research with several interviews with professional entrepreneurs. Our analysis suggests that originating from a wealthy family increases firm performance. Entrepreneurship might therefore be more prosperous for wealthy individuals. By investigating firm performance during the financial crisis of 2008, we find that entrepreneurs originating from wealth have a higher firmperformance ratio than those that do not come from wealth, during economic disequilibriums. The qualitative analysis indicate that wealthy entrepreneurs have easier access to credit markets owing to recognition of their family surname or family assets. We further find that entrepreneurs that do not come from wealth have found ways to fund new companies without approaching formal credit institutions. This could suggest that entrepreneur