DETERMINANTS OF SUCCESS FOR MEDIUM -
This paper explores the determinants of success for medium sized family-runbusinesses in South Africa. Succession Planning, Strategic Planning, CorporateGovernance and Broad-Based Black Economic Empowerment were tested in theresearch due to their significance in the literature.The research analysed each of the above areas as well as sought to identify whatmembers of family businesses regarded as determinants of their success, whilstlooking for similarities between family businesses belonging to different cultures andethnic groups. Based on input from the interviewees, the researcher assessed thevalidity of each variable as a determinant of success for family-run businesses inSouth Africa.CONTEXT AND RESEARCH AGENDAWithin the context of the South African national economy, family run businessesmake up about 84% of South Africa’s businesses; comprise 70% of all businessesinternationally, 35% of Fortune 500 companies and 50% of South Africa’s GDP andlabour force (Balshaw, 2004). According to the Department of Trade and Industry(DTI), South Africa has an estimated population of 46 million people and anunemployment rate of approximately 35% (DTI, 2004). Against this context, thesurvivability of family businesses in South Africa is significant as they continue tostimulate growth and employment for many South African citizens.METHODThe research design took the form of in-depth open-ended interviews. The interviewwas based around three questions.RESEARCH FINDINGSBased on the interviews conducted, determinants of success for medium sized familyrunbusinesses are largely underlying issues that were not mentioned in the literaturereview, and have not been full understood or studied in any great depth.
Year of publication: |
2011-04-05
|
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Authors: | Lewis-Enright, Christopher |
Subject: | Family businesses | Business success factors |
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