Family-owned and non-family-owned SMEs

Original by Nunes, 2014, 9 pages 

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Empirical evidence of survival determinants

  • Sample: 1589 family owned SME and 485 non family owned SMEs.
  • There is a difference between family owned and non-family owned SMEs.
  • Variables used: size, age, cash flow, debt, interest paid, expenditure on research and dev, risk and labour productivity.
  • Survival of family owned SME is increased by cash flow and labour productivity and is restricted by debt, interest paid and risk.
  • Survival of non-family owned SME depends on size, age, debt, R&D expenditure and cash flow. The later with less important as for family owned.
  • According to Gujarati & Porter (2010) when the correlation coefficients between independent variables are above 50%, the problem of colinearity becomes significant.
  • The article measures elasticity of each independent variables.