Family firms

Question 1

Business = performance based system vs. family = relationship based system

Answer 1

Ward, 1987

Question 2

Making Family firms a unique group of businesses

Answer 2

Chua et al 1999

Question 3

No agreed definition of family firms, used a variety of definitions relating to kingship, ownership, management and succession.

Answer 3

Westhead and Cowling 1998

Question 4

Depending on definition

Answer 4

found that 15-78.5% of private firms in the UK were FFs

Question 5

In general, 2/3rds private firms = FFs

Answer 5

Neubauer & Lank, 1998

Question 6

notable contribution to wealth creations, job generation and competitiveness e.g. in US FFs generate 12-59% GNP & 19-78% of new jobs

Answer 6

(Astrachan & Shanker, 2003).

Question 7

• Contribute to local and national economy

Answer 7

lanarelli, 1996

Question 8

• Lifestyle businesses. Only grow to ensure employment for family

Answer 8

(Birley et al., 1999)

Question 9

• Not profit or growth focused

Answer 9

Feinberg, 1975)

Question 10

• Access to liquid capital & low deb

Answer 10

(Dreux, 1990

Question 11

• Trust relationships with suppliers and customers

Answer 11

James 1999

Question 12

• Deliver high quality products

Answer 12

Lyman 1991

Question 13

o 73 family firms matched with 73 non-family firms.
o Financial and non-financial performance monitored.
o Univariate statistical analysis.
o Found differences but mostly no statistical significant e.g. FFs outperformed on gross sales revenues but under-performed in growth stats.

Answer 13

Westhead and Cowling 1997

Question 14

• 7% of FF generate over 72% of jobs in FFs

Answer 14

Westhead and Cowling 1997

Question 15

. Currently 40% FFs plan to pass down to next gen but in whole economy only 4% firms inherited

Answer 15

Harvey 2006

Question 16

6 types of ffs

Answer 16

o	Average
o	Professional
o	Cousin consortium
o	Professional cousin consortium
o	Transition
o	Open