Abstract: The paper discuss about the impact of family background and entrepreneurship specific education on the entrepreneurial knowledge in venture creation as well as the mediation effect of entrepreneurship specific education on the relationship between family background and entrepreneurial knowledge in venture creation. This study conducted as a cross sectional survey and used entrepreneurship graduates of University of Kelaniya as the sample. Data were collected by means of a structured questionnaire from 65 graduates. The assessment of the impact of family background and entrepreneurship specific education on entrepreneurial knowledge in venture creation and the mediating effect of entrepreneurship specific education was subjected to regression analysis. Findings of the study revealed that, there is an impact from family background and entrepreneurship specific education on entrepreneurial knowledge in venture creation and entrepreneurship specific education mediates the relationship between family background and entrepreneurial knowledge in venture creation. Remarks of the study help to understand that entrepreneurship can be stimulated through family background and the entrepreneurship education and trim down the belief that entrepreneurs are born but not made.