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The influence of family firms on the sustainability of start-up/nascent enterprises: a decision-making perspective
conference contribution
posted on 2017-04-24, 08:35 authored by Louise ScholesLouise Scholes, You Yi, Xiaoti Hu, Mathew Hughes, Paul HughesWe examine the influence of family and family businesses on the sustainability of start-up/nascent enterprises set up by family members. Family firms can expand by setting up new enterprises so that their offspring or siblings can start their own business. This has many advantages for the established and for the new firms. For the established firms funds provided for the start-up can be ring-fenced so the established firm can grow with reduced risk. It also provides family firms with a means of training the younger generation before they take over the whole family business. Sustainability for the start-up can come from the provision of additional resources that they often lack such as additional funding, access to a network of stakeholders such as a skilled workforce, customers, suppliers, and management expertise. However, there may be some disadvantage for the fledgling firm with this arrangement if there is conflict in the decision-making process between a dominant family firm founder and the new CEO of the fledgling business. This raises interesting questions about how decision-making in the start-up/nascent firm will be affected by the family firm and how this in turn affects its sustainability in the longer term.
History
School
- Business and Economics
Department
- Business
Published in
International Family Enterprise Research Academy (IFERA)Citation
SCHOLES, P. ...et al., 2017. The influence of family firms on the sustainability of start-up/nascent enterprises: a decision-making perspective. Presented at the 2017 - IFERA Research Development Workshop, Zadar, Croatia, June 28-July 1.Publisher
© The AuthorsVersion
- AM (Accepted Manuscript)
Publisher statement
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/Acceptance date
2017-04-07Publication date
2017Notes
This is a conference paper.Publisher version
Language
- en