The Impact of the Family and the Business on Family Business Sustainability

Abstract

Identifies strategies that would help familiesincrease both business and family success. Data from the 1997 National FamilyBusiness Survey were used to gather a nationally representative sample offamily businesses. Using this sample, three types of interviews were conducted:a screen interview to establish eligibility, a household manager interview, anda business manager interview. Findings indicate that, contrary to business theory assumptions, the effectof the family on business ventures is large. The most important finding is thatthe success of the business depended on family processes and how the familyresponded to disruptions rather than simply how the owner managed the businessalone. Key factors that lead to increased revenue include: reducing familytension, hiring temporary help during hectic periods, reallocating sleep timerather than family time to the business, and living in a two- orthree-generation family. This study is one of the first empirical studies to utilize the sustainablefamily business (SFB) model as its guide—a brief review of previous research onthe SFB model is also presented.(SFL)