Family Businesses Continuation
Literature Review:
Family Businesses Continuation
Name: Harshil Mahesh Patel
Student Number: 10811278
Word Count: 2627
Module: CA381 – Small Business & Entrepreneurship
Module Tutor: Clifford Conway
Date: 13/12/2012
Abstract
In the 21st century where our societies are highly developed, technology advancements and trade have lead to business growth all around the world. Within this vast business industry there are all types of players, one significantly powerful group that is not often mentioned are family businesses. Ranging with all sizes they contribute highly to both their countries and the world economy. However even though through entrepreneurship and dedication these businesses are built and grown, very rarely do they experience continuation from generation to generation. This paper aims to determine the factors contributing to lower continuation as newer generations come into power. This investigation is going to be conducted using passed written literature sources from articles, journals and institutional publications. With this information and analysis, recommendations will be presented which aid to achieve greater continuation within family businesses.
Introduction
Family businesses have been around for many years and range from small-specialized enterprise to large worldwide conglomerates. Family businesses often start off with one or more family members who are driven by entrepreneurship and goals. One or more of these individuals then manages these businesses, eventually with the aim of growth and family continuance through generations. Family businesses contribute significantly to both their businesses and the economy. In 2010, there where over 3 million family businesses in the UK, which accounted for 35.3% of private sector revenue and 23.8% of total GDP (Cable, 2011). Furthermore in the UK family enterprises employ over 9.2 million people, this not only accounts for GDP but also creates a positive multiplier effect
Family Businesses Continuation
Name: Harshil Mahesh Patel
Student Number: 10811278
Word Count: 2627
Module: CA381 – Small Business & Entrepreneurship
Module Tutor: Clifford Conway
Date: 13/12/2012
Abstract
In the 21st century where our societies are highly developed, technology advancements and trade have lead to business growth all around the world. Within this vast business industry there are all types of players, one significantly powerful group that is not often mentioned are family businesses. Ranging with all sizes they contribute highly to both their countries and the world economy. However even though through entrepreneurship and dedication these businesses are built and grown, very rarely do they experience continuation from generation to generation. This paper aims to determine the factors contributing to lower continuation as newer generations come into power. This investigation is going to be conducted using passed written literature sources from articles, journals and institutional publications. With this information and analysis, recommendations will be presented which aid to achieve greater continuation within family businesses.
Introduction
Family businesses have been around for many years and range from small-specialized enterprise to large worldwide conglomerates. Family businesses often start off with one or more family members who are driven by entrepreneurship and goals. One or more of these individuals then manages these businesses, eventually with the aim of growth and family continuance through generations. Family businesses contribute significantly to both their businesses and the economy. In 2010, there where over 3 million family businesses in the UK, which accounted for 35.3% of private sector revenue and 23.8% of total GDP (Cable, 2011). Furthermore in the UK family enterprises employ over 9.2 million people, this not only accounts for GDP but also creates a positive multiplier effect
References: Aronoff, C., McClure, S. & Ward, J. (2003) Family Business Succession: The Final Test of Greatness. 2nd ed, USA: Family Enterprise Publishers. Business Insider (2011) The Full Story Of The Massive Feud Between The Billionaire Ambani Brothers Conniff, R. (2003) The Natural History of the Rich: A Field Guide. W. W. Norton. p. 126. Courtney, S. & Davies, H. (2008) Family Business Management Perspectives, Succession. UK, Institute of Family Business. Miller, D., Le Breton-Miller, I. & Steier, LP. (2003) Lost in time: intergenerational succession, change, and failure in family business‘, Journal of Business Venturing vol. 18, pp. 513-531. Nicholson, N. (2008) Succession Management in Family Companies. UK, Peter Leach LLP. Scotland, AJ (2010) Factors that influence positive succession outcomes and longevity in long lasting Australian family enterprises. Australia, Southern Cross University. Singh, M. & Goodrich, J. (2006) Succession in Family-owned Businesses: The Case of Reliance Industries-India. USA, Willamette University. The Economist (2010) India 's warring Ambani brothers, Fuelling the feud. The Economist Newspaper, 07 May 2010. [online] <http://www.economist.com/node/16082277> [accesses 21 November 2012]