Abstract
Research background: Family businesses are undoubtedly important in both the Czech and international economy. They also play a crucial part in globalization. They have always been providing the largest job source in the private sector all over the world. However, over all these years, there has not been a unified definition of family business, which makes the government hard to distinguish between family and non – family business. Thus, this complicated the administrative and legal process. Finally, in 2019, the definition of the family business in the Czech Republic has been specified, which has facilitated many administrative and legal processes. Simultaneously, the management of Czech family businesses is currently facing the first “post-revolutionary” transition of generations. Many family businesses are deciding whether to maintain or to change the type of business entities. Purpose of the article: This article aims to determine the most advantageous legal form of business for micro family businesses. Methods: This article uses the Saaty pair comparison method and TOPSIS method. In addition to the methods of analysis, synthesis, and comparison, the selected methods of multiple criteria decision making are used in the article. Findings & Value added: The results of the decision analysis revealed that, based on the criteria considered (legal, accounting, tax and managerial), the most optimal legal form of the family business is self-employed. Apart from the results, the research adds value to this topic for the Czech business environment, in which future scholars can compare between the Czech Republic and the other countries.
Highlights
Businesses are the main business influencers in both developing and developed economies
The results suggest that there is no inherent supremacy of the family business structure and emphasizes the importance of conducting management analysis under different institutional conditions
Several studies have focused on the TOPSIS method and applied it in many fields such as financial performance evaluation and company evaluation or even business administration. [19] defined TOPSIS as a method based on selection of variants that are closest to the so-called ideal variant
Summary
Businesses are the main business influencers in both developing and developed economies. Businesses dominate world trade and generate 70-90% of GDP. According to the latest statistical data, they create 50-80% of jobs worldwide. In Europe, family businesses are even more important as [1] claimed. They represented 70% of the gross domestic product. They contribute to economic growth in South and East Asia, Latin America and Africa [2]
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