Understanding Entrepreneurship in a Small Family Business : An approach according to the Family Enterprise Ecosystem Model
This study puts special attention on how family businesses can create a unique context for entrepreneurship through its internal resources and how they can create wealth across gen-erations. These internal resources are called “familiness” that is generated by the interaction of the family and individual family members with the business. In order for the family business to be transgenerational (to create wealth across generations), they must develop their familiness and the culture must encourage family firms to be constantly involved in entrepreneurial activities.In this thesis, the internal resources of a family firm were analyzed in order to help the company understand the requirements of a transgenerational business. The familiness that were assessed in the family business are, as suggested by Habbershon (2006), network, tacit knowledge, access to financial capital, decision making, business portfolio, mentoring rela-tionship, and culture.As a result of the analysis, we conclude that the family firm has a positive bundle of famili-ness that can be used in order for the company to be more entrepreneurial. However, it is not enough to have a positive bundle of familiness that could encourage entrepreneurship; but also, the family members should have the psychological predisposition to allocate re-sources in the hope of finding entrepreneurial gain (Penrose, 1959).This study ends up with the recommendations that are useful in order to understand the requirements of a transgenerational family business.
School:Högskolan i Jönköping
Source Type:Master's Thesis
Keywords:family business entrepreneurship habbershon model enterprising ecosystem
Date of Publication:08/27/2007