Exploring the Affluenza Phenomenon among the Children of Entrepreneurs (A Grounded Theory Study)

Document Type : Research Paper


1 Phd Candidate Student, Islamic Azad University of Dehaghan,

2 Associate Professor, Islamic Azad University, Dehaghan Branch

3 Associate Professor, Islamic Azad University, Tehran North Branch, Iran


The emergence of the affluenza phenomenon as a symbol of extreme consumerism among the children of the entrepreneurs’ family can threaten the survival and growth of businesses that has not been so far studied comprehensively. The main purpose of this paper is to investigate the phenomenon of affluenza among entrepreneurs’ children using the grounded theory. After coding and analyzing, the information obtained from 15 semi-structured interviews (based on purposeful sampling method) with entrepreneurs of Tehran chamber of commerce, 117 concepts, 20 components and 7 categories were extracted using Atlas.ti software. According to findings of the study, the causal conditions of Affluenza phenomenon are factors such as unbalance between business and life by entrepreneurs, unfavorable role modeling of entrepreneurial parents along with unfavorable entrepreneurial national framework/conditions (unfavorable business environment) that creates Entrepreneurship-aversion mindset among the children of entrepreneurs. This mindset leads to non-entrepreneurial and even anti-entrepreneurial actions such as extreme consumerism, escape from hardship and etc. among the children of entrepreneurs. Family unfavorable environment (as contextual conditions) as well as general framework/conditions of society such as public culture and macroeconomic situation in the country (as intervening conditions) affects the entrepreneurship-aversion mindset of their children. The consequences of the affluenza phenomenon at the individual level lead to the lack of forming the transgenerational entrepreneurship, as well as at the business level leads to the lack of business survival and growth. Further, the affluenza phenomenon leads at the national level to loss national resources and lack of development of entrepreneurial national culture.


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