Do family businesses perform better than non-family businesses? The situation in Czech companies
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Date
2021-07-16
Authors
Srbová, Pavla
Režňáková, Mária
Karas, Michal
Pěta, Jan
0000-0003-4076-9829Advisor
Referee
Mark
Journal Title
Journal ISSN
Volume Title
Publisher
Economic Publishing Platform
Altmetrics
Abstract
Research background: Recent research conducted in the field of entrepreneurship focuses on a better understanding of specific features of family businesses, which, according to estimates, make up 55–90 % of all business entities in EU member states. Foreign studies emphasise the greater resilience of family businesses in the face of adverse changes in their business environment, their ability of long-term survival and a higher degree of socially responsible behaviour. Purpose of the article: The main objective of this article is to find out whether there are statistically significant differences in performance between family and non-family businesses. The results will be used to determine whether the performance of family businesses differs from that of non-family businesses and to identify the specific features of family business. This information will also be used to enhance our knowledge of family entrepreneurship and to determine whether the conclusions of foreign studies are also valid for family businesses in the Czech Republic. Methods: We compared the results of two sets of data with financial results to identify differences in the performance of family and non-family businesses. Due to the fact that there is currently no register of family businesses, we first had to identify which are family businesses and complement them with non-family businesses. We used the accounting data of almost 8,000 businesses from the years 2014–2018 for this analysis. We defined 44 indicators and tested them using Welch’s t-test. Findings & value added: The analysed sample consists predominantly of small businesses. We identified a total of 30 ratios whose values differ statistically at a significance level of 5 %, for example current assets to sales, retained earnings to total assets and labour cost to sales. We can deduce from the results that there are differences in performance between family and non-family businesses.
Description
Citation
Contemporary issues in economy. 2021, p. 137-146.
http://economic-research.pl/Books/index.php/eep/catalog/book/85
http://economic-research.pl/Books/index.php/eep/catalog/book/85
Document type
Peer-reviewed
Document version
Published version
Date of access to the full text
Language of document
en