External Factors of Business Environment and Family Business: Theoretical Review

Abstract

The study examines contemporary theories of the business environment and family entrepreneurship and shows what external effects the business environment has and what impact it can have on family businesses. Theories outlining the main external factors of the business environment and the different aspects of family businesses are highlighted. The business environment theories of Professors Campbell D. J. & Craig T. provide, in our opinion, the most comprehensive insight into the analysis of the external factors of the business environment, while Professors T. Zellwegers, K. E. Gersick and St. R. Covey highlight the various dimensions of the family business and its operational organisation. Our task in this article is to examine these two areas and how they interact and influence each other. The viability of family businesses requires stability and security and is determined by the environment in which the business operates. The external factors of the business environment are mostly those that the company cannot influence and that lead to uncertainty and instability. Early identification of undesirable conditions can help family businesses to respond more quickly. The European Commission's definition of a family business is at odds with that of academics. With this study, we invite you to update the discussion on the modern legal definition of a family business, which is the basis for policy planning documents, ensuring legal protection, assumption or inheritance of liabilities, etc. The results of the study could be significant for researchers dealing with business and economic regularity, as well as for entrepreneurs and professionals whose field of activity is related to business or public administration.