Handbook of Consumer Finance Research by Jing Jian Xiao

Author:Jing Jian Xiao
Language: eng
Format: epub, pdf
Publisher: Springer International Publishing, Cham

Conclusion and Implications

This chapter utilized the SFBT to establish a foundation for the relationship between the family, business, and community, and summarized literature on financial intermingling and couples starting businesses. It examined the stock and flow of family capitals employed at the intersectionof family and business. Healthy businesses depend on support from healthy families, and vice versa, for the survival and success of family businesses. While this literature has addressed many critical issues associated with the use of family capitals, the question of how these family capitals increase the probability of survival and success of family businesses remains an open question.

The most significant challenge facing this line of research is the lack of extensive panel data on family businesses. The full exploitation of the SFBT and analysis of family business survival and success requires extensive information on the health of both the family and business. Financial health could be measured by collecting information similar to the Survey of Consumer Finances on the family or household and Survey of Small Business Finances on the business. In addition, information on family capitals, similar to data collected in the National Family Business Survey, is critical to extend this literature.

Based on the findings of research discussed in this chapter, future researchers might include more couple-level processes at the firm and family interface that may ultimately impact the mutual sustainability of the firm and couple relationship. Future research might also examine characteristics and processes unique to copreneurs and how dynamics between spouses in these couples impact firm and couple relationship outcomes. Conceptualizing copreneurs by level of involvement and commitment to the new business venture may be a useful method by which to study entrepreneurs.

In addition, future research is needed to further examine the intersection between the family and small business where financial intermingling occurs. Understanding the influence of resource intermingling is critical because it may obscure family and business health and success. However, the intermingling of family and firm resources is an important adjustment strategy building resiliency, particularly in small firms. This resiliency may be very important to small business recovery after a natural or man-made disaster.

Most importantly, resource intermingling highlights the importance of including family variables in any analysis of small businesses. Resource intermingling (which includes financial, labor, and other resource intermingling), is important because it’s where the allocation of resources and resiliency of interpersonal relationships is tested. This intersection is important in assessing whether what is “good for the family business” is “good for family.” This intersection of the family and small business warrants further research to examine resource intermingling in more depth, expand the general definition of intermingling and assess the impact of intermingling on the survival and success of small businesses.

Family business educators might work to inform lending agencies and small business development centers (SBDCs) about the benefits of spousal involvement and spousal commitment to the new venture. SBDCs and lending agencies should be informed of the importance of spousal involvement in the business and its impact on commitment, communication, and emotional support that spouses provide to entrepreneurs during the first year of a business.

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