Entrepreneurial Family Research Articles

The Geographical Location as a Limitation for Starting Entrepreneurial Initiatives and Career Development

From the perspective of entrepreneurship, the geographical location is one of the important barriers/prerequisites for business development. Its role and place in the development of family entrepreneurship and the career development of young people has been relatively poorly studied. The aim of this paper is to provide an emperical research on the influence of the geographical location for starting entrepreneurial initiatives and career development. The object of this research are students having major or minor classes in the field of entrepreneurship from Albania, Bulgaria, Poland, Romania, Russia and Serbia. The subject of this research is on their attitude for career development in the field of family entrepreneurship and their geographical location. A standartised printed questionnaire has been used with Lickert scale for collecting the answers, translated into the national language of the respondents. The results are given in tables to compare the student intentions and outline their similarities. This paper could help the involved twelve universities to improve their teaching methods in a way their students to perceive the advantages of the geographical location and become part of the the regional entrepreneurs and companies.

The impact of family commitment on firm innovativeness: The mediating role of resource stocks

A variety of work has explored the firm level influences impacting innovativeness in family firms, yet little emphasis has been placed on the effect of the business family on family firm innovativeness. Drawing on the resource-based view and family commitment literatures, this analysis answers recent calls to consider the simultaneous influence the family system and the business system have on entrepreneurial activities. Using primary data, we study 275 family firms from multiple countries, to enhance our understanding of the fundamentals of family firm entrepreneurship. Specifically, we examine how family commitment influences family firm resource stocks (i.e., human, social, and financial), which consequently impact the entrepreneurial family firm outcome, innovativeness. Our findings suggest that some resource stocks (i.e., human and social capitals) mediate this relationship, whereas another resource stock (i.e., financial capital) does not. Our analysis demonstrates the differential impact of the disparate forms of capital on family firms’ innovativeness.

Growth implications of creation and discovery behavior among family firms: the moderating role of venture age

PurposeThe aim of the study is to examine the effects of opportunity creation and discovery on the performance of family firms. Specifically, from the tenets of dynamic capabilities and organizational contingency perspectives, this study proposes and tests a framework of how family firms' creation and discovery behavior impact venture growth and the conditions under which such impact can vary.Design/methodology/approachThe study uses moderated-hierarchical regression to analyze survey data from 156 family-owned small and medium-sized enterprises (SMEs) operating within a sub-Saharan African economy.FindingsThe findings indicate that creation behavior has a curvilinear U-shaped relationship with venture growth, while discovery behavior has a direct positive relationship with venture growth. Further analysis reveals that the curvilinearity of the U-shaped relationship between creation and venture growth will be stronger for older family firms than for younger ones.Research limitations/implicationsThe study findings may be limited by the cross-sectional nature of the data and the specific focus on family firms only.Practical implicationsThe results highlight the significance of pursuing both opportunities among family firms. In fact, both creation and discovery opportunities are significant drivers of family firm growth, albeit in different capacities. Relatedly, managers of older family firms (compared to younger firms) can invest more in exploiting creative opportunities.Social implicationsFrom these findings, governments and other stakeholders should create enabling environment and institutional frameworks conducive to exploiting opportunities by entrepreneurial firms.Originality/valueThe study is novel – as it provides unique findings on the performance implications of creation and discovery behavior of entrepreneurial family firms within developing economies.

Long-term persistence in entrepreneurship: the case of post-socialist Czechia (1930–2011)

ABSTRACT This paper explores the long-term persistence of interregional differences in self-employment rates. The analysis, based on spatial Durbin error models, was performed for 206 Czech regions from 1930 to 2011. The results obtained supported the ‘persistence claim’ because regional self-employment rates in 1930 were found to be positively and significantly associated with those obtained in 1991, 2001 and 2011. Moreover, this study contributes to the knowledge about transmission channels of historical entrepreneurial experience. First, a new mechanism related to the career and educational paths of individuals with a pre-socialist entrepreneurial family background is suggested. Second, the newcomers’ capacity to absorb knowledge and skills is emphasized as crucial for the functioning of pre-socialist ‘entrepreneurial memory’.

Are Family Businesses Long-Lived?

Theoretical background: Striving to maintain family ownership of the enterprise and to perform its succession is one of the main characteristics of this types of business entities Sustainability of family businesses fosters economic stability, intergenerational transfer of systems of family values and building a brand. However, implementing a strategy of development and expansion necessitates financing with external equity as well as professional management with the involvement of external managers, which leads to weakening or losing control of the family over the enterprise. Purpose of the article: The study aims to increase the knowledge on the family business’s age with taking into account the inflence that external factors as well as social and economic environment have on it. Research methods: The analysis of subject literature on family entrepreneurship and statistical data including international comparisons were applied. Main conclusions: A fairly common perception of family businesses as firms with long traditions is not fully appropriate. Within this groups, the most frequently quoted examples of family businesses existing for years are exceptional. A family nature that stabilises the existence of the firm gets weaker along with the intergeneration transfer of the ownership. Longevity occurs in small and medium enterprises, while large and professionalized ones lose their family nature preserving “familiness” as a brand along with their development.

РЕСУРСЫ ДЛЯ НАСЛЕДОВАНИЯ БИЗНЕСА В ПРЕДПРИНИМАТЕЛЬСКИХ СЕМЬЯХ

This work is devoted to the need to attract resources based on the analysis of two author's studies conducted on the topic "Family Business" and "Business Inheritance in Entrepreneurial Families". It was based on the concept of capitals by Ludwig Lachmann, who considered capitals as resources that have not only a material nature, but also a social context that determines and accumulates the actor's activity as an opportunity to generate new properties of existing capitals.

Family entrepreneurship and business sustainability in today's world: manufacturing firms in focus

This work examined family entrepreneurship and business sustainability in manufacturing firms. It adopted a descriptive survey which is a questionnaire-based technique to sample opinions and derive answers to the challenges of family entrepreneurship and business sustainability. The primary data that were used for analyses were responses gathered from business owners, traders and artisans through the administration of structured questionnaires. Percentage frequency counts were used to analyze the distribution of the demographic variables of the respondents; while the 3.5 mean decision rule was used to conclude the research questions. Likert scale with SPSS was used to analyze and obtain the mean of each item in the research question. A T-test score of 0.05 level of significance was used to determine the relationship between the variable of the hypothesis; also with SPSS. The study showed that pressure to hire family members and strong commitment are not factors to consider for business sustainability. Hence, a Family entrepreneur succession strategy must be put in place ahead of time by developing a succession plan which can enhance sustainability; and real management succession must be included in the strategy. Without a people- and market-focused strategy, a such succession plan will fail and sustainability will be defeated.

Family Business: Points and a Vector of Reference in Legal Regulation

The paper provides for statistical data characterizing family business in Russia and foreign countries. The author focuses on the role of family entrepreneurship for achieving national goals and implementing national interests. With reference to the approaches used in conducting sociological research and compiling ratings, emphasis is placed on the concepts of «family enterprise», «family entrepreneurship» and the conclusion is confirmed that it is necessary to consolidate the relevant definitions and criteria in legislation. Based on the opinion of experts, the author draws the readers’ attention to improving the efficiency of family companies named after their owners. The paper shows the importance of applied research and explains the state of the doctrine in the field of family business. The conclusion is made about legal research insufficiency in this area of public relations. The paper describes the results of the formation of the scientific school of family entrepreneurship in Kutafin Moscow State Law University (MSAL). The memorandum adopted by the professional community based on the results of the international conference has been published. The paper determines possible effects for the university, the industry, the region and society as a whole because of implementation of «Family Entrepreneurship» project

How do women entrepreneurs influence the strategic orientation of family businesses? A typology of Swedish decision-making in Småland community

PurposeThis paper aims to add to the theorization of family dynamics and women’s entrepreneurship by examining women’s influence on decision-making in family businesses. Business decisions in family firms, in particular, are not free from family influence in terms of goals and strategies, and the role of women in decision-making processes is of particular interest. Consequently, the role of women entrepreneurs in family firms and their influence on business development requires a more fine-grained analysis of the family dynamic within the family and the business.Design/methodology/approachThis study draws on a qualitative study and focuses on the life story narratives of nine women in rural family businesses in rural communities of Småland province in Sweden to empirically examine the decision-making processes. This region is known both for its entrepreneurial culture and traditional gender order. Based on the narrative accounts of women entrepreneurs in family businesses, the data analysis method is thematic, using a Gioia-inspired method.FindingsThe complexity of decision-making in rural family firms is further complicated in part due to a closeness with the rural community. Thus, a typology of three decision-making modes in family firms emerges an informal family-oriented mode, a semistructured family/employee consensus mode and a formal board mode with at least one nonfamily member. Moreover, the advantages, disadvantages and strategies that women use to influence decisions within the respective mode are outlined.Originality/valueThis work contributes to the study of women’s agency and its implications in family business and entrepreneurship in the rural context. The study implies that women’s agency shapes the (rural) entrepreneurship context and, likewise, the (rural) entrepreneurship context influences women’s agency. Hence, the author challenges the view of women as only caregivers and sheds light on the practices and processes behind the scenes of entrepreneurial family businesses.

The practical challenges faced by young entrepreneurs: an empirical analysis

PurposeThis study proposes a new comprehensive model of entrepreneurial intentions (EIs) that enhances the understanding of the crucial entrepreneurial personality traits. This study also examines how entrepreneurial family history, gender and discipline moderate the relationship between the key entrepreneurial personality traits and EIs of university students.Design/methodology/approachThe study introduces a new combination of important entrepreneurial personality traits, theoretically following the theory of planned behaviour (TPB). The data are collected using an entrepreneurial intention questionnaire and analysed with structural equation modelling (SEM) over a sample of 297 university students from Pakistan.FindingsThe findings highlight that one of the notable contributions to assessing EI is the negative impact of foreseeable challenges (FCs), resulting in negative EIs among university students of our sample. The authors also found significant moderating roles of gender, discipline and entrepreneurial family history in strengthening the relationship between entrepreneurial traits and EIs.Originality/valueThe study contributes both to the existing empirical and theoretical literature by examining a key set of entrepreneurial personality traits leading to enhance EIs. The results may also assist academicians to discover new ways for developing entrepreneurial traits among university students.

The Impact of Digital Technology Use on Passive Entrepreneurial Exit in Rural Households: Empirical Evidence from China

To reduce the passive entrepreneurial exit of rural families and improve the quality of rural entrepreneurship, we theoretically discuss how digital technology can help rural families to obtain resources in the process of entrepreneurship from a micro perspective to inhibit the passive entrepreneurial exit, and perform an empirical test by using the data of three consecutive periods of China’s household finance survey in 2015, 2017, and 2019. The results show that: First, digital technology use has a significant inhibitory effect on the passive entrepreneurial exit of rural families. Second, the role of digital technology lies in effectively improving the social capital, human capital, and financial capital of entrepreneurial families, thus inhibiting the passive entrepreneurial exit of rural families. Third, the role of digital technology is related to the development level of village social networks and county economic development levels. The average marginal effect of data technology in villages or counties with high development levels is higher. The policy implications are as follows: We should accelerate the improvement of rural digital infrastructure construction, accelerate the expansion of digital services for the people, and enhance the ability of farmers to use digital technology while increasing policy support for farmers’ entrepreneurship.

Extending the absorptive capacity of the small family entrepreneurs and managers as gatekeepers

ABSTRACT Specialized literature reveals that the level of absorptive capacity (ACAP) within organizations depends on the individuals who are at the company's interface with the external environment or at the interface between the company's subunits. It also highlights that some individuals assume relatively centralized gatekeeper roles. The study argues that individual ACAP precedes organizational ACAP, as it is necessary to understand the role of individuals in the capacity of companies to absorb external knowledge. The purpose of this article is to explore the role of owner-managers of small family businesses in ACAP. The exploratory research method uses case studies. The results show that small family business owner-managers have the qualities of gatekeepers and that, even though they help with communication and knowledge transfer across company borders and increase their ACAP, these professionals have limited roles as gatekeepers because of their family ties and affective-emotional matters.

The “open family firm”: openness as boundary work in family enterprises

“Openness” has become an established norm in the contemporary business environment. However, despite the crucial importance of boundaries and boundary work in organization and management theory, openness—as opening up boundaries of family firms and entrepreneurial families in collaborating with external actors—has received only nascent attention in the family business domain. We introduce the notion of openness in the family business field. Drawing on the organizational boundary and family business literatures, we develop a conceptual framework of family firm openness as boundary work and examine and discuss the drivers, mechanisms, and consequences of openness in family enterprises. Then, drawing on this framework, we set out an agenda for future research that will contribute to a better understanding of openness, boundaries, and boundary work in family firms and entrepreneurial families. We conclude by discussing some contemporary examples of research on the “open family firm.”

Challenges of rural women entrepreneurs in Bangladesh to survive their family entrepreneurship: a narrative inquiry through storytelling

PurposeFamily entrepreneurship benefits women because of their economic, family, and social needs. But, as rural women, it is not much easy for them to maintain their family entrepreneurship successfully. Thus, this paper aims to explore the main challenges faced by rural women entrepreneurs in Bangladesh to survive their family entrepreneurship.Design/methodology/approachThis study is qualitative in nature, based on narrative inquiry. The purposive sampling technique was used as a part of a non-probability sampling method to collect the data from rural women entrepreneurs from three districts (Khulna, Shatkhira, and Sylhet) in Bangladesh engaged in family entrepreneurship. No new information was found after collecting the data from seven (07) respondents; thus, they were chosen as the final sample size.FindingsThe findings show that rural women entrepreneurs faced primarily social and cultural, financial, and skill-related challenges, though they face other challenges to survive their family entrepreneurship. The attitude and perception of society toward women and their roles are at the root of social and cultural barriers. Researchers also found that financial challenges have a colossal impact on rural women and the other problem.Practical implicationsAlthough entrepreneurial activities are essential for socio-economic development in these developing countries, this research adds to the existing information by highlighting the main challenges that rural women face when they want to be business owners and entrepreneurs.Originality/valueResearch on rural women entrepreneurship in Bangladesh is limited and new. This study can provide an overview of the challenges faced by the rural women entrepreneurs and provide them with a blueprint for the development of women entrepreneurs in developing countries.

Share Pledging, Family Businesses, and Entrepreneurship in Emerging Economies

Entrepreneurial families often leverage internal capital and resource markets to incubate new entrepreneurial ventures in the challenging institutional environment of emerging economies. This article explores a relatively common but unexplored phenomenon of entrepreneurial financing by families in emerging economies – share pledging. To further understand the mechanisms behind pledging and why families pledge shares, we hypothesize that the ownership and governance attributes of the family firm should impact the family owner’s propensity to pledge shares owing to the family’s control and risk considerations. Through a sample of 1,444 Indian family firms, we find that a family’s degree of ownership in the firm, involvement in the firm’s leadership, and the presence of foreign institutional investors affect the family owner’s cognitive predisposition towards pledging. Our study contributes to entrepreneurship literature by exploring an alternate value-creation institutionalized mechanism in a regulatory and social context that differs considerably from the traditional Anglo-Saxon setting.

Intergenerational Transmission of Entrepreneurial Identity within Entrepreneurial Families

Entrepreneurial families play a critical role in the next generation’s interest in and desire for entrepreneurship. Because entrepreneurship is an identity construction process, the influence of entrepreneurial parents on the construction or nonconstruction of their children’s entrepreneurial identity (EI) needs to be explored. This paper provides a theoretical framework of the children’s EI construction process. It specifically suggests that entrepreneurial parents’ emotional expression resulting from the identity verification process and emotion regulation in family communication can influence the children’s identity construction processes. When parents’ EI is verified and its resulting positive emotion is expressed in a conversation- and conformity-oriented environment, it sends children the message that EI can enhance identity motives. This message leads to the activation of EI assimilation and maintenance for the children. We contribute to existing research by going beyond seeing parents only as role models by highlighting the interplay between parents’ EI enactment and child’s identity construction and explaining the family communication influence.

Issues of using bank credits in development of family entrepreneurship

Issues of using bank credits in development of family entrepreneurship

Issues of using bank credits in development of family entrepreneurship

Entrepreneurship plays an important role in the sustainable development of the national economy and plays a leading role in solving economic and social problems. In our country, a number of tasks have been carried out in the areas of creating an entrepreneurial environment in every family, their financial support, the allocation of soft loans. This article examines the activities of banks in the use of soft loans allocated for the organization of entrepreneurship in each family, provides analytical data, suggestions and recommendations.

The Effect of Dependency Burden on Household Entrepreneurial Exit Behavior: Empirical Evidence from Chinese Households

The elderly dependency ratio in China has increased from 10.7% in 2003 to 17.8% in 2019, and there may be a link between the widespread withdrawal of family entrepreneurship in society and the increased dependency burden. Based on China Family Panel Studies, we empirically examine the impact of dependency burden on household entrepreneurial exit behavior. We find that the likelihood of household exit from entrepreneurial activity increases as the population ages. Compared to active exit from entrepreneurship, dependency burden mainly induces failure exit from household entrepreneurship. In addition to reducing physical capital accumulation and labor supply, dependency burden also reduces the household workforce’s mental and physical health, leading to the entrepreneurial exit. The application of digital technology can mitigate the negative effects of dependency burden in household entrepreneurship. The mitigating effect of digital technology will be enhanced with the deepening of the application. Therefore, government and academia need to pay attention to the negative effects of dependency burden on the sustainability of household entrepreneurship.

RELATIONSHIP RECONSTRUCTION AND VALUE CO-CREATION OF ENTREPRENEURIAL EDUCATION SUBJECT UNDER THE TEND OF DE-CENTRALIZATION FROM THE PERSPECTIVE OF VALUE NETWORK THEORY AND MENTAL HEALTH

RELATIONSHIP RECONSTRUCTION AND VALUE CO-CREATION OF ENTREPRENEURIAL EDUCATION SUBJECT UNDER THE TEND OF DE-CENTRALIZATION FROM THE PERSPECTIVE OF VALUE NETWORK THEORY AND MENTAL HEALTH