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Influence of family ownership on small business growth. Evidence from French SMEs

Author

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  • Anaïs Hamelin

    (LARGE - Laboratoire de Recherche en Gestion et Economie - UNISTRA - Université de Strasbourg)

Abstract

The performance implications of family ownership have been studied extensively. However, studies that investigate the influence of family ownership on small business growth remain scarce and suffer from several shortcomings. To remedy these shortcomings, this paper uses a very large sample of French SMEs to explore the relationship between family ownership and small business growth. First, this study shows that there is a negative, although non-monotonic, relationship between family ownership and small business economic growth. Second, it explores the channel through which family ownership affects firm growth. Results suggest that firms with greater family ownership are prone to below-potential rates of economic growth, given their internal financing resources. Overall, the results suggest that small family businesses have a propensity to deliberately limit their growth (i.e., they adopt conservative growth behavior).

Suggested Citation

  • Anaïs Hamelin, 2013. "Influence of family ownership on small business growth. Evidence from French SMEs," Post-Print hal-02496359, HAL.
    • Handle: RePEc:hal:journl:hal-02496359
    DOI: 10.1007/s11187-012-9452-x
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    Cited by:

    1. Marie Mikušová & Václav Friedrich & Muhammad Kamal Subhani, 2025. "Do economic and cultural differences influence family businesses? Comparative study from Czechia and Pakistan," Future Business Journal, Springer, vol. 11(1), pages 1-30, December.
    2. Johanna Vanderstraeten & Ellen Loots & Anais Hamelin & Arjen van Witteloostuijn, 2020. "Micro-foundations of small business internationalization: introduction to the Special Section," Post-Print hal-03015594, HAL.
    3. Wu, Hangyao & Xu, Zeshui & Skare, Marinko, 2022. "How do family businesses adapt to the rapid pace of globalization? a bibliometric analysis," Journal of Business Research, Elsevier, vol. 153(C), pages 59-74.
    4. Backman, Mikaela & Palmberg, Johanna, 2015. "Contextualizing small family firms: How does the urban–rural context affect firm employment growth?," Journal of Family Business Strategy, Elsevier, vol. 6(4), pages 247-258.
    5. María J. Martínez-Romero & Julio Diéguez-Soto & Pieter Vandekerkhof, 2023. "Enlightening the influence of family TMT involvement on firm growth and degrowth rates," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 581-610, September.
    6. Tauer, Loren, 2014. "Are two heads better than one head in managing the farm business?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 165739, Agricultural and Applied Economics Association.
    7. Andersson, Fredrik W. & Johansson, Dan & Karlsson, Johan & Lodefalk, Magnus & Poldahl, Andreas, 2017. "The Characteristics and Performance of Family Firms: Exploiting information on ownership, governance and kinship using total population data," Working Papers 2017:1, Örebro University, School of Business.
    8. Maggioni, Daniela & Santangelo, Grazia D., 2017. "Local Environmental Non-Profit Organizations and the Green Investment Strategies of Family Firms," Ecological Economics, Elsevier, vol. 138(C), pages 126-138.
    9. Ferri, Giovanni & Murro, Pierluigi & Pini, Marco, 2020. "Credit rationing and the relationship between family businesses and banks in Italy," Global Finance Journal, Elsevier, vol. 43(C).
    10. Ku-Hsieh Chen & Pei-Hwa Chen & Julie Ann Elston & Yingchao Zhang, 2023. "Are family firms more efficient? Revisiting the U-shaped curve of scale and efficiency," Small Business Economics, Springer, vol. 61(3), pages 983-1008, October.
    11. Donatella Depperu & Giacomo Magnani & Lisa Crosato & Caterina Liberati, 2021. "Growth of Firms in a Fragmented Cultural Industry: Italian Commercial Art Galleries’ Competitive Strategies," Sustainability, MDPI, vol. 13(9), pages 1-19, April.
    12. Isabel Feito-Ruiz & Clara Cardone-Riportella & Susana Menéndez-Requejo, 2014. "SMEs’ Delisting Decisions on the Alternative Investment Market (AIM): Family Holders and Financial Crisis," Working Papers 14.02, Universidad Pablo de Olavide, Department of Financial Economics and Accounting (former Department of Business Administration).
    13. Moreno-Menéndez, Ana M. & Casillas, José C., 2021. "How do family businesses grow? Differences in growth patterns between family and non-family firms," Journal of Family Business Strategy, Elsevier, vol. 12(3).
    14. Massimo Baù & Francesco Chirico & Daniel Pittino & Mikaela Backman & Johan Klaesson, 2019. "Roots to Grow: Family Firms and Local Embeddedness in Rural and Urban Contexts," Entrepreneurship Theory and Practice, , vol. 43(2), pages 360-385, March.
    15. Fabio Zona, 2015. "Board ownership and processes in family firms," Small Business Economics, Springer, vol. 44(1), pages 105-122, January.
    16. Fredrik W. Andersson & Dan Johansson & Johan Karlsson & Magnus Lodefalk & Andreas Poldahl, 2018. "The characteristics of family firms: exploiting information on ownership, kinship, and governance using total population data," Small Business Economics, Springer, vol. 51(3), pages 539-556, October.

    More about this item

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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