Nicos Nicolaou’s research team used quantitative genetics techniques to compare the entrepreneurial activity of 870 pairs of monozygotic (MZ) and 857 pairs of same-sex dizygotic (DZ) twins from the UK, and found relatively high heritability for entrepreneurship, with little effect of family environment and upbringing.
Because MZ twins share all of their genetic composition and DZ twins share half of their genetic material on average, differences in the concordance between entrepreneurial activity of MZ and DZ twins can be attributed to genetic factors.
Studies of MZ and DZ twins raised together and apart have shown that the MZ twins raised apart are consistently more similar than DZ twins raised together.
Many parents are misinformed or make erroneous evaluations about the zygosity of their twins, leading some parents to raise their DZ twins as MZ twins and other parents to treat their MZ twins as DZ twins. Studies have shown that in cases where parents made erroneous conclusions about the zygosity of their twins, it was actual, rather than perceived zygosity that predicted similarity between twins.
The researchers estimate that 48% of the variance in the propensity to become self-employed is explained by genetic factors. None of the variance in self-employment can be attributed to shared environmental factors, while 52% can be attributed to non-shared environmental factors plus measurement error.
The researchers re-ran the analysis adjusting the model for potential confounders - income, education, marriage, age, race, and immigrant status - that have been shown to be associated with entrepreneurship. The heritability estimates for self-employment, drop only to 41% when these variables are included.
To identify the mechanism through which genetic factors operate, the researchers examined the respondents attitude toward entrepreneurship through an item that asked them to indicate, on a scale from one (a very good career) to five (a very bad career), their view of entrepreneurship as a career. The best fitting model to explain the variance in attitudes included shared and unshared environmental factors. None of the variance was explained by genetic factors, indicating that the mechanism through which these factors affect the tendency to become an entrepreneur is not through attitudes toward the vocation.
“Is the Tendency to Engage in Self-employment Genetic?” (.pdf file here), by Nicos Nicolaou, Scott Shane, Tim D. Spector, and others