Unique Features of Czech Family Businesses

Abstract

Purpose of the article Family businesses are the predominant form of business, and not only in the Czech Repub-lic. As such, they have a significant impact on the economy. The literature review shows that family businesses have specific characteristics that distinguish them from non-family businesses. A family business is one in which the family holds a majority ownership and controls strategic decisions. In these businesses, there is a sense of social responsibility, and the owners tend to care about the business environment and support the next generation of the family. As a result, increased attention is paid to the specifics of these businesses. It is, therefore, important to know the specifics of Czech family businesses and compare them with assumptions from the literature. Methodology/methods The characteristics of family-owned businesses were identified on the basis of a literature review. These characteristics were then the subject of a questionnaire survey. Data were analysed using descriptive statistics and evaluated in relation to assumptions made in the foreign literature. Scientific aim This article aims to describe the specifics of Czech family businesses and compare them with the assumptions derived from the literature. This is followed by an explanation of the reasons for the differences found as compared to expectations. Findings The following differences from foreign research on family businesses can be highlighted: Czech family businesses have a short history, they do not often develop long-term plans, one third of owners are willing to accept non-family investors, and only 10% of owners stated that family members are preferred when selecting employees. Conclusions Many family businesses in the Czech Republic are currently dealing with the first generational trans-fer. This study improves understanding of Czech family business specifics, which could help to prevent failures in the succession of family businesses to the next generation. Originality/value The study examines the unique aspects of Czech family businesses as compared to their coun-terparts abroad.Purpose of the article Family businesses are the predominant form of business, and not only in the Czech Repub-lic. As such, they have a significant impact on the economy. The literature review shows that family businesses have specific characteristics that distinguish them from non-family businesses. A family business is one in which the family holds a majority ownership and controls strategic decisions. In these businesses, there is a sense of social responsibility, and the owners tend to care about the business environment and support the next generation of the family. As a result, increased attention is paid to the specifics of these businesses. It is, therefore, important to know the specifics of Czech family businesses and compare them with assumptions from the literature. Methodology/methods The characteristics of family-owned businesses were identified on the basis of a literature review. These characteristics were then the subject of a questionnaire survey. Data were analysed using descriptive statistics and evaluated in relation to assumptions made in the foreign literature. Scientific aim This article aims to describe the specifics of Czech family businesses and compare them with the assumptions derived from the literature. This is followed by an explanation of the reasons for the differences found as compared to expectations. Findings The following differences from foreign research on family businesses can be highlighted: Czech family businesses have a short history, they do not often develop long-term plans, one third of owners are willing to accept non-family investors, and only 10% of owners stated that family members are preferred when selecting employees. Conclusions Many family businesses in the Czech Republic are currently dealing with the first generational trans-fer. This study improves understanding of Czech family business specifics, which could help to prevent failures in the succession of family businesses to the next generation. Originality/value The study examines the unique aspects of Czech family businesses as compared to their coun-terparts abroad.