This paper analyzes inherited ownership effects, defined as socialization benefits that employees acquire while working in privately-held firms that may be transferred to a spawn. We test for inherited ownership effects in the population of Swedish entrepreneurial spawns competing in medium-high and high technology manufacturing industries. Preliminary results show that spawns of family-owned businesses survive at a higher rate than spawns of non-family-owned businesses. Moreover, spawns that share family ties with the parent company survive at a higher rate than spawns started by non-family members. This findings suggest the existence of inherited ownership effects that influence the performance of new firms.