DETERMINANTS OF SUCCESS FOR MEDIUM -

Date
2011-04-05
Authors
Lewis-Enright, Christopher
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
This paper explores the determinants of success for medium sized family-run businesses in South Africa. Succession Planning, Strategic Planning, Corporate Governance and Broad-Based Black Economic Empowerment were tested in the research due to their significance in the literature. The research analysed each of the above areas as well as sought to identify what members of family businesses regarded as determinants of their success, whilst looking for similarities between family businesses belonging to different cultures and ethnic groups. Based on input from the interviewees, the researcher assessed the validity of each variable as a determinant of success for family-run businesses in South Africa. CONTEXT AND RESEARCH AGENDA Within the context of the South African national economy, family run businesses make up about 84% of South Africa’s businesses; comprise 70% of all businesses internationally, 35% of Fortune 500 companies and 50% of South Africa’s GDP and labour force (Balshaw, 2004). According to the Department of Trade and Industry (DTI), South Africa has an estimated population of 46 million people and an unemployment rate of approximately 35% (DTI, 2004). Against this context, the survivability of family businesses in South Africa is significant as they continue to stimulate growth and employment for many South African citizens. METHOD The research design took the form of in-depth open-ended interviews. The interview was based around three questions. RESEARCH FINDINGS Based on the interviews conducted, determinants of success for medium sized familyrun businesses are largely underlying issues that were not mentioned in the literature review, and have not been full understood or studied in any great depth.
Description
Keywords
Family businesses , Business success factors
Citation
Collections