Study finds adolescents who work in family businesses are more likely to be successful

In her research paper, Overcoming Time Compression Diseconomies of Organizational Emergence through Family Business Work, Assistant Professor of Management Marjan Houshmand found that individuals who work in family businesses during adolescence are more likely to develop self-employment tendencies, become self-employed later in life, and become financially successful. Houshmand tested her hypotheses using eight years of longitudinal data from the "Youth in Transition Survey." She examined self-employment businesses during various stages and developed a theoretical framework using time compression diseconomies, which are the costs endured by an organization to be competitive in a short period of time. According to Houshmand, this theoretical framework is used to explain why young individuals working for their family's business have an edge over their non-family business peers when it comes to becoming successful business owners.