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