In this study we examine the effects of ownership by family business groups (FBGs) on the intensity of corporate entrepreneurship (CE) in firms. We explore two research questions – (1) Do firms belonging to FBGs display higher CE than stand-alone firms? (2) What are some of the critical factors explaining the heterogeneity in CE intensity within FBG firms? Drawing on resource-based theory and extant research on business groups and family firms, we argue that since firms belonging to FBGs benefit from resources endowments at both group and family level, they have an edge in stimulating CE. We test our predictions using a panel data set of 1518 Indian firms and 2972 new projects completed by them during the period 2001-2009. We find that firms belonging to FBGs display higher degree of CE than stand-alone firms. Further, greater the size of owner FBG, higher is the degree of CE displayed by the firm and FBG firms that are publicly listed exhibit higher CE intensity. Our study contributes to the research on entrepreneurship in family firms and integrates the research streams on business groups and family businesses.