Attitudes of Owner-Managers' Children towards Family and Business Issues

Abstract

This paper reports responses from 412 children of owner-managers (61% sons and 39% daughters) with regard to their attitudes to family and business Issues. The assumption in the study was that respondents would display a consistent set of attitudes toward the relationship between the family and the business. For example, those who believed that “management successors should be chosen from the family” would also consider “the business (to be) stronger with family members involved.” Moreover, this group would view their parents’ business as a family business and would have joined or intend to join. The reverse would also apply. In other words, those who did not believe that “management successors should be chosen from the family” would nor view their parents’ business as a family business, and would have no intention to join. In the study, two distinct clusters of attitude were identified and were labelled the Family in and Family Out groups. While those in the Family in group were more likely to consider the business to be a family business, the results for the Family Out group were more complicated. The relationship held for those currently working in the business—the halo effect—but not for the rest. In other words, it was quite possible to belong to the Family in group and to see the business as a family business but not to have joined.