Influences of Start-Up’s Financial Intermingling on Entrepreneurial Stress in Sustainable Family Businesses: Mediation Effect of Work–Family Balance

Abstract

One factor affecting entrepreneurial success at the small-business start-up level is the impact on family life. This study examines the effects of intermingling financial resources on the quality of life of families operating businesses in South Korea. Based on the Global Entrepreneurship Monitor 2022 assessment, which ranks South Korea 9th out of 51 economies, South Korea emerges as a promising area for scholarly research in this area. The analysis results are as follows: First, when financial intermingling occurs (when family and business finances are merged to some degree), entrepreneurial stress was found to be higher. Second, financial intermingling between family funds and business finances increased entrepreneurial stress by impairing the work–family balance. Third, when one spouse is more dedicated to supporting start-ups, entrepreneurial stress caused by the pressure to use family funds as business finances is greater. As small-business start-ups often require creative means to generate primary financing, resource exchanges between families and businesses may sometimes be a regrettable necessity. However, if the potential downsides of resource exchange are ignored, and resource exchange frequently occurs over a long period of time, it can place significant stress on all parties and may adversely affect the sustainability of a family business.