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The Role Of Family Start Ups In The Emergence Of A Small Business Sector In Bulgaria

Author

Listed:
  • DENISE FLETCHER

    (University of Sheffield Management School, 9 Mappin Street, Sheffield, UK. S1 4DT, UK)

  • EMIL HELIENEK

    (Nottingham Business School, Nottingham Trent University, Burton Street, Nottingham, UK)

  • ZVETA ZAFIROVA

    (Varna University of Economics, Bulgaria)

Abstract

It is widely reported that entrepreneurial activity has a significant role to play in transition economies such as Central and Eastern Europe but little is known about the role that the family unit plays in facilitating small business emergence in the former command economies. This is surprising given that the link between family and small business development has been widely researched in market economies. In this study, attention is drawn to the role that family relations and resources play in small business emergence. The study focuses on Bulgaria, a country in the Balkans with much cultural diversity and which became a European Union member in 2007–8. Analysis is undertaken of research material drawn from a survey of 69 small firms. 42% of the surveyed firms are two generation businesses involving the entrepreneur and children or parents. 35% of the businesses are three generation businesses involving the lead entrepreneur, parents, children and siblings. The remaining 33% are firms that are run by couples and/or siblings. This suggests that the family household is the key channel for (and of) small business formation. In neglecting the role of family start-ups, this gives a false understanding to the role that households and families sometimes contribute to the economy. At the same time, it is also partly because of this dependency on family relations and resources that small businesses become rooted in the 'informal economy' — an economy that is based on family favours and which it is difficult to break out of.

Suggested Citation

  • Denise Fletcher & Emil Helienek & Zveta Zafirova, 2009. "The Role Of Family Start Ups In The Emergence Of A Small Business Sector In Bulgaria," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 351-375.
    • Handle: RePEc:wsi:jecxxx:v:17:y:2009:i:03:n:s0218495809000369
    DOI: 10.1142/S0218495809000369
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    Citations

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    Cited by:

    1. Astrachan, Joseph H., 2010. "Strategy in family business: Toward a multidimensional research agenda," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 6-14, March.
    2. Desislava I. Yordanova, 2016. "Differences between Bulgarian Family and Non-family Businesses: A Multivariate Logit Approach," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 779-789.
    3. Kiril Todorov & Iliya Kereziev, 2013. "Leadership Transfer and the Successors Preparation in Bulgarian Family Enterprises," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 5-20, April.
    4. Aliaa El Shoubaki & Jörn Block & Frank Lasch, 2022. "The couple business as a unique form of business: a review of the empirical evidence," Management Review Quarterly, Springer, vol. 72(1), pages 115-147, February.
    5. Desislava I. Yordanova, 2016. "Differences between Bulgarian Family and Non-family Businesses: A Multivariate Logit Approach," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 779-789.

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