Born-family firms’ advantage in navigating liability of newness and entrepreneurial growth aspirations

Purpose This study investigates the disparity in growth aspirations between born-family firms (BFFs) and non-family startups, with a focus on how family dynamics shape entrepreneurial goals. It aims to understand how inherent family resources and relational cohesion influence the entrepreneurial ambition to grow. Design/methodology/approach Drawing on familiness and the family embeddedness perspective, this research examines how BFFs leverage family-related advantages to mitigate the “liability of newness.” The study also explores the moderating effects of internal nuclear family factors – specifically household income and household size – on the relationship between firm type and growth aspirations. Findings The findings suggest that BFF entrepreneurs tend to exhibit significantly higher growth aspirations than their non-family startup counterparts. Furthermore, household income and household size play a moderating role in this relationship, highlighting the nuanced influence of internal family dynamics on entrepreneurial ambition. Originality/value This research contributes to entrepreneurship literature by showing how family structures and resources influence early-stage venture growth, highlighting the need to consider both firm- and household-level factors.