The Impact of Small- and Medium-Sized Family Firms on Economic Growth

Abstract

Drawing on family business studies and the knowledge-based view of economic growth, we develop and test a model of how the prevalence of small- and medium-size enterprises (SMEs) under family control affects economic growth. Specifically, we propose there is an inverted U-shaped relationship between family SMEs' proportional representation and economic growth owing to their relative strengths and limitations vis-à -vis non-family SMEs. Using state-level data from the US between 2004 and 2010, we find support for our hypothesis and the underlying contention that economic growth is maximized when an economy includes a balanced mix of family and non-family SMEs.

Department(s)

Business and Information Technology

Keywords and Phrases

Economic growth; Family business; Family firms; Knowledge asymmetry; SMEs

International Standard Serial Number (ISSN)

0921-898X; 1573-0913

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2015 Springer Verlag, All rights reserved.

Publication Date

01 Dec 2015

Share

 
COinS