Small Family Firms

The governance field is well studied. However, small family firms do not receive their fair amount of coverage, despite their importance. In this work the field of governance in small family firms is qualitatively explored, using a sample of eight Swedish firms with a total of ten interview partners. Using a Constructivist Grounded Theory, informed by previous literature, we find nine key themes characterizing governance in small family firms: (1) Ownership & Board, (2) Holding Company, (3) Advisor & External Help, (4) Responsibility, (5) Formality, (6) Informality, (7) Conflict, (8) Succession and (9) Discussion & Conversation. Our findings suggest that all small family businesses employ some form of governance, however, this is not always recognized as such in previous literature, showing that corporate governance is too narrowly defined. We also investigate why governance structures are (not) implemented and how this is done. In connection to this, we visualize the factors influencing whether or not a small family firm implements formal governance structures. Additionally, we discuss what actually makes a family firm small. We contribute by investigating governance concepts in another context, namely the one of small family businesses, and seeing to what extent they hold up. The work allows us to conclude that some findings confirm existing theory, while others question it or cannot be found therein at all.

Every family business has the intention of attracting customers with quality products and services and creating an impression of the economy on the one hand, which on the one hand keeps on the tradition and on the other hand, it provides accessibility to the 21st century. As a modern customer is impatient and wants to get everything with one mouse click and small family business adapt to new customer needs and increasingly using digital technology enter the world that was once only reserved for "big players". The fact is that the consumer is modern and can not manipulate it, but only adapt to their needs. Consequently, based on these information, the style of family farm operations is changed in terms of spending time and money in creating a fast and efficient link with customers. Today, one of such links is providing social networks. Social networks enable increase income nearly every business entity. But the question is how many social networks influence the possibility of increasing the income of a small family business? It is precisely the question of the foundation of this work. The paper focuses on the linkage between the increase revenues of small family business and social networking. Today, social networks are emerging in the process of improving the market position of large companies, but how much they really are in the implementation of the same goals from the aspect of a small family business.