The Role of Family Involvement in the Entrepreneurial Business

Abstract

This paper explores how family involvement influences the entrepreneurial business. Therefore, the paper gives an understanding of how the family forms the embeddedness and how its involvement constitutes a change to the entrepreneurial business. The main background used for this work analysis is the Family Embeddedness perspective developed by Aldrich and Cliff. It equally seeks to bridge the gap that exists in the literature framework, which gives a new direction for upcoming researchers. Furthermore, the report uses the entrepreneurial business stages to categorize the insights by time.

This study was conducted on three independent cases of small born global firms in the manufacturing industry. The main data sources of this paper were primary data and secondary data, collected between 2000 and 2007. The primary data consist of a total of 108 personal interviews with 58 respondents achieved through snowball sampling and Secondary data was collected through annual reports, internal reports, photographs, newspaper articles, memos, and contracts.

Our key findings indicate that family members have a major influence on the entrepreneur. Moreover, this paper explores the different extent in which the family involved in the entrepreneurial growth throughout different stages with typical challenges.