This paper examines the factors influencing the transition to self-employment, focusing on the roles of financial and human capital, and how they are transmitted intergenerationally. Using data from the National Longitudinal Surveys (NLS), the study investigates how parental wealth and human capital affect the likelihood that an individual will move from a wage and salary job to self-employment. The research finds that while financial assets of young men have a statistically significant but small effect on the transition to self-employment, parental human capital has a much larger influence. This influence is primarily through the intergenerational correlation in self-employment, which is stronger along gender lines. The study also highlights that the probability of self-employment is higher for sons of self-employed parents, suggesting that self-employment is not just a result of financial resources but also of human capital, such as managerial experience and skills. The analysis shows that parental self-employment experience significantly increases the likelihood of a son becoming self-employed, even after controlling for other factors like the son's own financial assets and education. Furthermore, the study finds that parental wealth is associated with a higher probability of self-employment, but the effect is smaller compared to the influence of parental self-employment experience. This suggests that the transmission of human capital, rather than financial resources, plays a more critical role in the intergenerational transmission of self-employment. The results indicate that policies aimed at enhancing human capital, such as education and training, may be more effective in promoting self-employment than those focused solely on financial capital. Overall, the study underscores the importance of both financial and human capital in the transition to self-employment, with human capital playing a particularly significant role in intergenerational transmission.This paper examines the factors influencing the transition to self-employment, focusing on the roles of financial and human capital, and how they are transmitted intergenerationally. Using data from the National Longitudinal Surveys (NLS), the study investigates how parental wealth and human capital affect the likelihood that an individual will move from a wage and salary job to self-employment. The research finds that while financial assets of young men have a statistically significant but small effect on the transition to self-employment, parental human capital has a much larger influence. This influence is primarily through the intergenerational correlation in self-employment, which is stronger along gender lines. The study also highlights that the probability of self-employment is higher for sons of self-employed parents, suggesting that self-employment is not just a result of financial resources but also of human capital, such as managerial experience and skills. The analysis shows that parental self-employment experience significantly increases the likelihood of a son becoming self-employed, even after controlling for other factors like the son's own financial assets and education. Furthermore, the study finds that parental wealth is associated with a higher probability of self-employment, but the effect is smaller compared to the influence of parental self-employment experience. This suggests that the transmission of human capital, rather than financial resources, plays a more critical role in the intergenerational transmission of self-employment. The results indicate that policies aimed at enhancing human capital, such as education and training, may be more effective in promoting self-employment than those focused solely on financial capital. Overall, the study underscores the importance of both financial and human capital in the transition to self-employment, with human capital playing a particularly significant role in intergenerational transmission.