Small Family Businesses Research Articles

Advancing Women Entrepreneurs: A Framework for Small Family Businesses Success within the Sustainable Economy

This article introduces the Holistic Enterprise Success and Sustainability Index (HESSI), a novel framework designed to enhance the success of women-led small family businesses (SFBs) in the context of a sustainable economy. Through a comprehensive literature review and theoretical exploration, this study articulates how women entrepreneurs' perspectives are intricately aligned with both familial values and business imperatives. HESSI employs a robust suite of indicators to measure financial robustness, societal contribution, environmental stewardship, and family solidarity—each meticulously refined to reflect the specificities of women-led SFBs. These indicators transcend traditional, financial-centric metrics, advocating for an expansive evaluation of success that considers economic performance alongside social, environmental, and familial well-being. Crucially, the HESSI framework incorporates women's familial insights, positioning them as a driver of internal cohesion and a pivotal element in integrating Environmental, Social, and Governance (ESG) principles. This broader vision of success metrics includes family unity and the perpetuation of legacy. HESSI promotes an all-encompassing approach to success evaluation that is grounded in gender perspectives, entrepreneurial agility, and a staunch commitment to sustainability principles. The discourse presented is a significant contribution to the fields of gender, entrepreneurship, and sustainable development, providing actionable insights into the vital role of women entrepreneurs in forwarding the sustainability agenda. It underscores the importance of advancing education, reinforcing policy frameworks, and fostering community solidarity to support and extend the reach of women-led SFBs, thus charting a course towards a more equitable and sustainable future in the business landscape.

From Tiny Cues to Business Transformation: Serendipity and Strategic Project Initiations in a Small Family Business

Insights on strategic project processes are needed in a contemporary society characterized by many disruptions and major transformations. In this paper, we supplement existing theoretical framings on the process of strategic project initiation by exploring the relationship between serendipity, i.e., surprising and valuable discoveries, and strategic project initiations. With a qualitative longitudinal embedded multi-case study approach, we study a family business entrepreneur who successfully transforms her small family business via strategic projects initiated by serendipity triggers. Our research provides four contributions related to the nature of the relationship between serendipity and strategic project initiation: (1) the causality between the two phenomena can go in both directions; (2) strategic project initiation can relate to Archimedean, Columbian, or Galilean serendipity; (3) a time lag between the serendipity trigger and the strategic project initiation may exist; and (4) business stakeholders and family stakeholders may be involved in serendipity triggers and strategic project initiations through different logics.

Proposed Strategy for Maintaining A Small-Family-Business Enterprise in a Competitive Property Market

This study addresses the growing challenges faced by small family businesses in the competitive property market by proposing strategic interventions specifically designed to sustain and enhance the viability of Allure Realty Group, a family-run enterprise established in 2012 in Jabodetabek. With increasing complexity in the property sector due to urbanization, shifting consumer demands, and stringent regulatory environments, the research aims to develop a robust strategic framework. The methodology involves a combination of qualitative and quantitative approaches, including surveys and interviews, to identify key problems and collect data. Analytical tools such as the Marketing Mix 7P, VRIO Framework, and STP Analysis for internal factors, and PESTLE Analysis, Porter’s Five Forces, Competitor and Customer Analysis for external factors are used to conduct SWOT and TOWS analyses for strategic development. The study hypothesizes that targeted strategies will significantly improve the business's resilience and competitiveness in the market. Key objectives include identifying challenges faced by Allure Realty Group, developing strategies to address these issues, and implementing actions to improve operational efficiency, customer satisfaction, and market expansion. The expected outcomes are enhanced operational frameworks, increased customer satisfaction, and a larger market share, contributing to the business's long-term sustainability. This research contributes to business management theory by providing insights into strategies for small family businesses in rapidly evolving markets. The findings aim to bridge traditional business values with modern management practices, offering valuable guidance for both academic researchers and business practitioners in navigating the complexities of the property industry.

Profiling the Cypriot Fisheries Sector through the Lens of Fishers: A Participatory Approach between Fishers and Scientists

Despite the sector’s minor contribution (0.5%) to the Gross National Product, the fisheries sector in Cyprus is particularly important to the micro economy of coastal communities, offering direct and indirect employment and supporting small family businesses. Like any industry, the Cypriot fisheries sector faces its own challenges and opportunities. The current study aimed to identify the strengths, weaknesses, opportunities, and threats (SWOT) of the fisheries sector in Cyprus based on fishers’ knowledge and to provide strategic recommendations based on the sector’s identified needs. Following a participatory approach, a workshop with 30 small-scale fishers, six large pelagic longline fishers, and three scientists was conducted in November 2023. Fishers and scientists worked together to conduct the SWOT and the TOWS matrix (a reverse SWOT) analyses. Findings from the SWOT–TOWS analyses were used to develop strategic recommendations for the sector. Finally, using the Impact–Effort prioritisation method, the strategic recommendations were prioritised according to their potential impact on the sector and the effort required for their implementation. Based on the analyses, the study proposes 12 strategic recommendations that could significantly improve the sector’s overall performance and sustainability, which if applied will give a light of hope for the future of the Cypriot fisheries sector.

A Qualitative Study on Stewardship Relationships in Family Businesses in Türkiye

This study aimed to explain the basic dynamics of stewardship relationships in small and medium-sized family businesses in Türkiye and the contextual features that produce them by taking a phenomenological approach, one of the qualitative research methods. Data were collected via semi-structured interviews. The study sample comprised 35 participants from 14 family businesses in Antalya, Türkiye, including 18 family member managers and 17 non-family senior employees. Using thematic analysis, 6 main themes and 18 sub-themes were identified. While the results are consistent with previous research, they also strongly point to a steward profile specific to family businesses in Türkiye.

Potential exit strategies of entrepreneurs operating micro and small family businesses and non-family businesses in Poland

Potential exit strategies of entrepreneurs operating micro and small family businesses and non-family businesses in Poland

Sustainable entrepreneurial behaviours of family members at the intersection of family firm, cooperative and rural community: a multilevel perspective

ABSTRACT Little is still known about the approach and rationale of family members’ entrepreneurial behaviours for sustainability that occur at different interconnected levels. Our study helps to fill this void by examining a multilevel web that links a family firm, a cooperative and a rural community. We rely on an inductive semi-grounded approach guided by conceptual ideas from the sustainable entrepreneurship literature. We conducted 54 in-depth interviews within a Cypriot cooperative composed of small rural family businesses. Our findings reveal that sustainable entrepreneurship revolves around family members acting as sustainable entrepreneurs. Family sustainable entrepreneurs draw on collaborative entrepreneurship for sustainability and spillover sustainable entrepreneurship, which are key mechanisms for generating sustainable value at the family firm, cooperative and community levels. Family members’ affective attachment and sense of responsibility serve as motives behind these mechanisms. Our findings offer a model depicting family members’ motives and mechanisms of sustainable entrepreneurship across family firm, cooperative and rural community. This study extends our understanding on family entrepreneurship and sustainable entrepreneurship, offering practical contributions and opportunities for future research.

THE IMPACT OF THE MATRIMONIAL PROPERTY REGIME ON COMMERCIAL COMPANIES ACCORDING TO ALBANIAN LEGISLATION

Background: The purpose of this study is to examine the interaction between the legal discipline of matrimonial property regimes and the commercial activities of spouses that are established before or during marriage. It aims to investigate how the legal community impacts commercial companies, specifically in the hypothesis where the shareholder of the company is married. There is ongoing debate within legal circles about whether shares of a commercial company established by one spouse during marriage or acquired through a legal transaction are part of the legal community. Regarding this matter, several issues arise: whether the participation in the company's initial capital is governed by community administration rules, which is the legal nature of shares acquired by one spouse, and how the marital community regime interplays with commercial legislation. Another issue that has engaged legal doctrine is whether the spouse of a shareholder is recognised as a shareholder and can participate in the company administration. Albanian Family Code lacks specificity on shares, mainly addressing small family businesses. The study of the interaction of these two disciplines aims to assist jurisprudence because, despite some cases of the Supreme Court and the Constitutional Court in recent years, this is still a relatively new field for Albanian doctrine and jurisprudence. Methods: The research methodology adopted for this paper employs a multi-faceted approach, integrating desk research, legal analysis, case law review, and a comparative study. It encompasses an examination of relevant national legislation, as well as foreign legislation from civil law tradition countries such as France and Italy. Furthermore, European soft law, notably the principles of the European Commission of Family Law (CEFL) focusing on matrimonial property issues, has been reviewed. Our research methodology includes gathering and analysing existing studies and academic literature on matrimonial property regimes. To better understand the norms of the Family Code regarding matrimonial property regimes, we will analyse Italian and French doctrine and jurisprudence, as well as the legal systems based on which the Albanian Family Code has been drafted. It should be emphasised that while this paper’s primary aim is not solely comparative analysis, it strives to assist in better understanding and implementation of the legal community regime as the most used regime by spouses in practice. Also, a comprehensive comparative analysis has been conducted, comparing Albanian legislation and the CEFL Principles, to identify key similarities, differences, and potential areas for enhancement within legal frameworks. Moreover, the jurisprudence of both Albanian and foreign High courts has been extensively utilised to enrich the analysis and provide insights into practical applications of legal principles. Results and Conclusions: The solution to the abovementioned issues depends on the company’s legal structure and articles of participation rules and requires a combined interpretation of matrimonial property regimes and commercial law. In this combined interpretation of the rules, protecting the rights and interests of all involved subjects, the interests of the spouses and those of the commercial company as a legal entity is crucial.

Impact of COVID-19 on Small Domestic and Inbound Travel Agencies and Tour Operators in West Bengal, India: Perspectives of Offline Owners-Managers

Purpose: This article delves into the mindset of small family business owners in tourism during the COVID-19 crisis, their strategies, and the barriers they faced in recovery. The study is particularly significant as it sheds light on the experiences of entrepreneurs in both urban and backward/rural areas of West Bengal, providing valuable insights for policymakers and professionals in the tourism and hospitality industry. Methodology: The qualitative research approach involved semi-structured interviews with thirteen family-owned tour operators or travel agency owners/managers. A fixed semi-structured questionnaire was used to explore their views on management operations during and after the crisis, allowing for open discussion and new insights. Principal Findings: The findings underscore the remarkable resilience of small family-operated tour operators and travel agencies. Despite facing multiple challenges, including threats of existence, the pressure of fixed costs, non-performing travel inventories, feeling unethical, uncertainty about the future, and feelings of loss of goodwill with lenders, these entrepreneurs have shown remarkable adaptability and determination. Originality: This research offers unique insights into the mindset of family business owners in the Indian context, particularly the urban-peripheral context. The study also highlights the gap between the government's measures and the needs of entrepreneurs in this post-COVID-19 era, providing a comprehensive understanding of the challenges and opportunities in the tourism industry.

Role of Successor, Government Policy, and Collaboration Synergy on Sustainability Family Business: Moderation of Gender and Firm Age

This article aims to describe the impact of external factors (government policy and collaboration synergy) and internal factors (successor knowledge and successor willingness) on the future viability of small and medium enterprise (SME) family businesses during the COVID-19 pandemic and experimentally validate the significance of firm age and gender as moderators. Partial least squares structural equation modeling was used to analyze data from 170 owners or the next generation of family business SMEs. This study discovers evidence that government policy, collaborative synergy, successor knowledge, and successor willingness all significantly influence the SME family business’s viability. Meanwhile, it has been found that company age has a role in moderating the synergies between government policy and collaborative synergy with sustainability. However, gender is not proven to moderate the influence of internal factors on sustainability. The findings of this study imply that SME families must be able to form successors with the ability and knowledge to obtain business opportunities. During the COVID-19 epidemic, there must be an intense commitment to be responsible and transmit the family company to attain sustainability. In addition, the owner/next generation of family business businesses must take the initiative to take advantage of government assistance and collaborate with stakeholders.

THE RECEPTIVENESS PUZZLE: UNDERSTANDING WHY SMALL FAMILY BUSINESSES STRUGGLE WITH ACTIVITY-BASED COSTING ADOPTION

This study examines the challenges associated with the adoption of activity-based costing (ABC) in a small family business in a less developed country. Through a case study of PT XYZ, a logistic company, the study found that technical factors, including unpredictable customer requests, varying duration of activities, and uncertainty around distance and fuel consumption for each truck, make adopting the ABC method challenging. Organizational factors, such as a top-down hierarchy and the negative perception of the owner affecting the rest of the hierarchy, also contribute to the non-acceptance of ABC. Additionally, key agents within the company did not demonstrate enthusiasm toward changes. The cultural and contextual factors and unique characteristics of small family businesses further make them less receptive to adopting new ideas or changes, including the ABC method. This study offers practical implications for introducing changes, such as improving data collection processes, establishing better communication channels with family business owners, and seeking external expertise or advice from professionals with experience in family business management. The study expands the current discussion on ABC implementation and contributes to the family business literature by linking family business characteristics with the adoption of the ABC method.

INFLUENCE OF THE CHARACTERISTICS OF SMALL AND MEDIUM FAMILY BUSINESSES ON CRM IMPLEMENTATION: A CASE STUDY

Purpose: This paper aims to explore the customer relationship management (CRM) strategies adopted by Family Small and Medium Entreprises (SME), while highlighting the impact of their characteristics and their assets on the choice and the adoption of these CRM strategies. Methodology: Since the unique case study approach allows in-depth, multi-faceted explorations of complex issues, we opted for it as a research strategy in order to develop a detailed understanding of the problem. Therefore, an in-depth case study was carried out within a small and medium family business in Morocco. Findings: Through this study, we have highlighted causal links between the characteristics and specificities of the family SMEs and their impacts on the adoption and implementation of CRM tools and strategies. While some characteristics linked to the nature of family SMEs such as participatory management style, familiness, the desire to transmit the business to future generations and proximity to customers constitute assets for the implementation of CRM, other characteristics, such as the desire to maintain financial independence and recruitment policies that are most often in favor of family members despite their competence, can negatively influence the implementation of successful CRM projects. Implications for Theory and Practice: The results of the present paper allow the authors to draw conclusions that are relevant to both academics and practitioners. As for the theoretical implications, this study highlights the relationship between the characteristics of family SMEs and the choice and implementation of CRM strategies, while relying on their strengths. Furthermore, developing a good understanding of the specificity of CRM adoption and implementation approaches within family SMEs has important managerial implications for family SME decision-makers, as it can help them make better decisions regarding the choice of relevant CRM strategies and to optimize the deployment of available human, financial and technological resources, while relying on their socio-emotional wealth and their motivation to perpetuate the company. Originality: This paper is one of the first to explore CRM strategies adopted by family SMEs. The authors present a conceptual framework that can help researchers and practitioners better understand how the family business nature can influence decisions about CRM tools and strategies implementation.

Debt financing and growth of Ghanaian family-owned businesses: The dual role of family values

ABSTRACT This study investigates how family values can create finance and growth challenges for family-owned businesses in emerging economies. Specifically, it explores the interplay between family values, debt financing, and firm growth, while also considering the moderating role of self-enhancement and self-transcendence in this relationship. The paper uses Schwartz’s theory of human values to illustrate how incorporating indigenous ontologies based on Ubuntu can lead to sustainable growth in family businesses in Ghana and the African continent. A sample of 295 Small and Medium-sized family businesses in Accra, Ghana, was selected using purposive sampling, and multiple regression modeling was used to test the study’s hypotheses. The study employed Cronbach’s alpha and factor analysis to assess the reliability, validity, and variations between observed and correlated variables. The results suggest that family businesses with conservation, openness-to-change, and self-enhancement values may not be inclined to utilize debt financing, and conservation values have a negative effect on family business growth. The study also found that self-enhancement, conservation, and self-transcendence values positively moderated the relationship between debt financing and family business growth, with self-transcendence values playing a more significant role. These findings contribute to a better understanding of the complex relationship among family values, debt finance, and business growth in emerging economies, and lay a foundation for future research.

Sugarcane Rapadura: Characteristics of the Oldest Historical Energy Food and Its Native Production Method

Rapadura is a well-recognized sugar-cane-derived product with a sweet, characteristic flavor and hard texture. This product is a cultural Brazilian landmark, particularly in Ceará, Brazil, where it is usually produced by small family businesses and consumed locally. This feature contributes to the difficulties of rapadura production standardization, a requirement for the global market. Against this backdrop, this study focuses on analyzing the centesimal composition and mineral content of rapadura. Six samples from different cities in Ceará were analyzed for moisture, ash, lipids, proteins, carbohydrates, energy value, and minerals. The results ranged from 6.42–11.74% for moisture, 0.23–1.12% for ash, 0.49–0.92% for protein, 85.18–89.12% for lipids, and 352.00–391.19 Kcal for energy value. Significant variations were observed between the samples, showing a lack of standardization in the production process. The analysis of micronutrients revealed low levels, with copper and iron standing out in sample D. It can be concluded that the rapadura analyzed meets the physical-chemical parameters established by national legislation and is a food rich in carbohydrates and energy.

RESILIENCE AND CONFLICT: THE ROLES OF COPRENEURSHIP, TRANSGENERATION, AND DARK SIDE OF FAMILY BUSINESS

The present study aimed to examine the role of copreneurship, transgeneration, and the dark side with conflicts in and continuity of family-managed small and medium-sized enterprises (SMEs) or family businesses. Data was derived from 178 owners of batik SMEs, consisting of both those managed by spouses and those inherited. Data analysis was done using SEM-AMOS.22 and showed that (1) copreneurship positively related to family business conflicts; (2) transgeneration positively related to business management conflicts; (3) member family’s dark side positively related to conflicts; and (4) conflicts occurred due to tenuous family social identity (decreased co­pre­ne­urship bond, transgenerational process failure and dark side) positively related to family bu­si­ness resilience. The present study also included control variables for business size and gene­ra­ti­onal order in order to determine the extent and resilience of business continuity.

He-said, she-said: A family science and gendered perspective of communication in small family businesses

ABSTRACT Responding to calls to use family theories in family firm research, we adopt a family science perspective to understand the impact of the family system elements of gender and communication on the family business system. We draw from family communication pattern theory to theorize that family employee voice in family firms is a direct reflection of the owning family’s communication orientation. Further, we theorize that gender is a unique factor within a family system that alters expected employee voice outcomes associated with the family’s communication orientation. We test our theorizing using primary dyadic data collected from family firm leaders and their family employees in 103 small family firms. Findings indicate that the family’s communication orientation can transfer to the family firm; however, the transfer effects differ by orientation and are contingent on leader-employee gender similarity. We discuss novel insights gleaned from our study and implications for research and practice.

Natural language processing analysis of online reviews for small business: extracting insight from small corpora

Receiving and acting on customer input is essential to sustaining and growing any service organization, particularly a small family business whose livelihood depends on strong relationships with its customers. The competitive advantage offered by advanced analytical approaches for supporting decisions is not trivial, and enterprises across virtually all domains of society are investing heavily in this emerging discipline. Natural Language Processing (NLP) is a subset of computer science that employs computational approaches to analyze human language; it is effective at extracting insight from text data but frequently requires large corpora to train its models, in the scale of thousands or millions of documents. This restricts its accessibility to those large enterprises with the capability to capture, store, manage, and analyze such corpora. This research explores a pilot study that applies NLP approaches, specifically topic modeling and large language models (LLM), to assist a small, family-owned business in assessing its strengths and weaknesses based on customer reviews. The relevant corpora of online Facebook, Google Reviews, TripAdvisor, and Yelp reviews is far smaller than ideal, numbering only in the hundreds. Results demonstrate that coherent and actionable insights from big-data approaches are obtainable and that small organizations are not automatically excluded from the benefits of these advanced analytical approaches, with complementary employment of both topic modeling and LLM presenting the greatest potential for similarly-positioned organizations to exploit.

Heritage and Legacy in Small Family Firms in Latin America

Family businesses in Latin America often have deep roots and play a significant role in the region's economy. The heritage and legacy of small family businesses in Latin America can be understood through several key aspects. One is the historical context; many small family businesses in Latin America have a long history that spans several generations. Another is influenced by the region's rich and diverse cultural heritage. Cultural values, such as a strong sense of family, community, and tradition, can shape the decision-making processes within these businesses, as well as the adaptation to Economic Challenges. At the same time, Latin America has faced economic challenges and fluctuations over the years. Small Family businesses in the region have often demonstrated resilience and adaptability in navigating economic uncertainties. In this Special Issue about Heritage and Legacy in Small Family Firms in Latin America, we have assembled a compilation of articles by researchers who interact closely with business families throughout Latin America. Building on a collaborative research framework involving authors from several countries, this effort accounts for the increasing number of family business studies in Latin America. The authors explore diverse issues and processes within family businesses in the region.

The Influence of Succession Planning, Knowledge Sharing and Innovation Capability to Enhance Sustainability of Small and Medium-Sized Family Businesses’ Socioemotional Wealth

Family businesses are known for prioritizing non-financial goals, such as socioemotional wealth (SEW). However, many small and medium-sized family businesses (SMFBs) face challenges like insufficient succession planning and reluctance to engage in innovation and knowledge sharing. While research on SEW is extensive, limited studies explore the relationship between succession planning and SEW, as well as the role of innovation capability in mediating the link between knowledge sharing and SEW in SMFBs. This study addresses these gaps by surveying 118 Malaysian SMFBs through non-probability sampling. In order to guarantee the data’s representativeness of SMFBs, the questionnaire was pre-tested by specialists who included numerous screening questions and inclusion criteria for sample selection. The IBM SPSS Statistics and Smart-PLS software were employed to analyze the data. The results indicated that SEW attainment was influenced by knowledge sharing, whereas SEW was not influenced by succession planning. It was also discovered that the relationship between knowledge sharing and SEW attainment was mediated by innovation capability. These findings challenge traditional views on succession planning and highlight the importance of innovation and knowledge sharing for the sustainability of family businesses. Individuals who are involved in family enterprises can make more informed decisions and take actions that contribute to the long-term success, sustainability, and well-being of their organizations by comprehending and implementing these findings.

Employing ‘someone to be your voice’ in an artisanal gastronomic tourism business: Authenticity, cultural capital and human resources

The difficulty of hiring suitable staff in rural areas has been particularly challenging for small gastronomic family businesses involved in tourism. Their human resources needs may include the ability of employees to tell stories about the business, including the family history, and to assist in maintaining its authentic image for visitors. This article explores the experiences of artisanal food or beverage tourism businesses with respect to employment of staff and draws on qualitative data from case studies of South Gippsland, Victoria in Australia and the UK’s Peak District. Sixteen semi-structured interviews were conducted with relevant stakeholders. Findings suggest that familiness played an important role in the way that many of these artisanal gastronomic businesses made their decisions to employ staff, linked to issues of authenticity and cultural capital. While employing non-family members to interact with visitors in public-facing roles was generally not a preferred option, these businesses may need to train and empower non-family staff to tell the family story in a convincing and acceptable way or pursue collaborations with other artisanal businesses to overcome the problem of staff shortages.