Constructive business advice? Different trajectories between family businesses and startups

Abstract

Purpose The purpose of this paper is to investigate the verbal content and its impact on panel-based business advice meetings (springboards) for family business owners and startup entrepreneurs. Further, the study also investigates how panel-based advising assists entrepreneurship. Design/methodology/approach The investigated springboards concern family business owners who run established firms and startup entrepreneurs who are applying for venture capital. Data from 12 different springboards are collected and studied by content analysis. Findings The outcomes indicate that advising is more constructive for the family business owners than for the startup entrepreneurs. This can mainly be explained by the rational screening that follows the business plan concept and group dynamics which appear in these meetings. Research limitations/implications The study was conducted in Sweden and concerns Swedish family business owners and startup entrepreneurs. It reveals different speech patterns that appear during organized advice-giving and its implications depending on the type of entrepreneur. Practical implications This study provides potential input to change the institutional practice of panel-based business advice, which will likely support entrepreneurs in their business development and network building. Originality/value This study is the first to investigate the verbal content in panel-based business advice for family business owners. Further, it provides a deeper understanding of the institutionalized conditions that this kind of advising builds on.