George W. Haynes

Family Capital of Family Firms: Bridging Human, Social, and Financial Capital

The purpose was to present a family capital typology based on Sustainable Family Business Theory II and to document its relative contribution to short-term firm achievements and long-term sustainability using National Family Business Survey panel data. Family capital was defined as total owning-family resources composed of human, social, and financial capital. Family capital significantly contributed to firm achievements and sustainability. In the short term, all family capital types explained 13.5% of gross revenue variance and 4% of owner’s success perception variance. In the long term, all family capital types explained 26.7% of gross revenue variance and 11.6% of owner’s success perception variance.

Revisiting the Study of Family Businesses: Methodological Challenges, Dilemmas, and Alternative Approaches

Family businesses are vital but understudied economic and social units. Previous family business research is limited relative to its definitions, sampling, and resulting empirical evidence. This paper presents an alternative methodological approach to the study of family businesses with the potential for allowing multiperspective and detailed analyses of the nature and internal dynamics of both the family and the business and the interaction between the two.

The Intermingling of Business and Family Finances in Family-Owned Businesses

This study uses data from a national survey of 673 business-owning households to assess factors associated with intermingling business and family finances. Logit analysis indicates that the use of family resources in the business is more likely in sole proprietorships; when the business owes money to financial institutions; and when the business owner is older, more experienced, and without children in the household. Family use of business resources is more likely if the business is incorporated, is located in a rural area or small town, and borrows money.

Socially Responsible Processes of Small Family Business Owners: Exploratory Evidence from the National Family Business Survey

The purpose of this exploratory study is to ascertain the impact of family, business, and community factors on the socially responsible processes of small family businesses, and investigate the influence of financial success and attitudes toward community on these processes. The research is grounded in the Sustainable Family Business Theory, which has been enhanced to include the interactive and collaborative action, both economically and socially, of family businesses and their communities. Data are from the National Family Business Survey, 2000 panel. The processes studied include interpersonal transactions in the form of community leadership and holding an elected or appointed office, and resource transactions in the form of providing financial or technical assistance in community development, and providing donations to local programs. Models assessed the probability and intensity of assistance provided by family businesses. The findings indicate that the social and economic climate of the community may contribute to the performance of responsible actions by businesses because human, social and financial capital resources from both the family and the business can be used to solve problems in the community. The most robust result was that individuals with very positive attitudes about their local communities were more likely to serve in leadership positions and make financial and technical contributions to the community. Business owners in economically vulnerable communities were willing to assume more responsibility to fill leadership positions in the community and make substantial contributions of financial and technical assistance than those in less vulnerable communities. Policymakers must recognize the many contributions of family businesses and forge rural developmentpolicies that not only help sustain existing businesses and fuel the engine of economic growth, but encourage human capital development, and, in turn, enhance the contributions of the family and the business to their community.

DETERMINANTS OF FAMILY BUSINESS RESILIENCE AFTER A NATURAL DISASTER BY GENDER OF BUSINESS OWNER

Using National Family Business Panel data combined with national natural disaster and federal disaster assistance data, the purpose of the study was to investigate relative contributions of human, social and financial capital; natural disaster exposure; and federal disaster assistance to business-owning family resilience over time for male and female family business owners. With a theoretical foundation of Sustainable Family Business and Conservation of Resources theories, the study examined 311 small family firms from the National Family Business Panel. Federal disaster assistance explained a significant amount of variance in firm-owning resilience. Higher levels of federal disaster assistance were associated with lower family firm resilience for male-owned businesses and higher family firm resilience for female-owned businesses. This study advances knowledge of firm sustainability after natural disasters by adding to the conceptualization and measurement of family firm resilience; by having baseline firm financial data prior to disaster exposure; by utilizing a national, representative, longitudinal family firm sample; by including a range of natural disasters and federal disaster assistance; and by including family resilience over time.

Sampling Minority Business Owners and Their Families: The Understudied Entrepreneurial Experience

We here review and critique prior research on minority entrepreneurship, paying particular attention to the contributions and limitations of deployed sampling techniques and research methodologies. As based on this review, we then introduce the 2003 and 2005 National Minority Business Owner Surveys—a comprehensive and primary data collection effort that used varied methodologies to secure in‐depth information about random national samples of African American, Korean American, and Mexican American populations as well as a comparison sample of nonminority business owners. We present the initial business ownership profiles developed with these recent data, in part, as a benchmark of the U.S. entrepreneurial experience, and compare the profiles with those presented in prior research. These profiles document similarities and differences across the four groups and provide an empirical foundation for understanding the origin of those similarities and differences. No longer can we ignore the in‐depth study of minority businesses and their owning families nor can we simply assume that all businesses are the same, regardless of minority status or ethnicity.

Mental health issues in the workplace: a case for a new managerial approach.

Anger, stress, and depression in the workplace are growing concerns among management. Traditionally, health outcomes have functioned under the realm of workplace health professionals. This study assessed whether a traditional worksite health promotion program had an impact on mental health factors. The results suggested that worksite health promotion programs play a limited role in ameliorating work-related mental health outcomes. Rather, management must play a greater role in addressing workplace stress, anger, and depression.

The Contribution of Home-Based Business Income to Rural and Urban Economies

During the past decade, many rural and urban residents have turned to home-based self-employment as a means of providing for themselves and their families. Home-based work can be considered a form of community development for its potential as an alternative or supplemental income source for residents and for its economic multiplier effect on a community and region. This article reports results from a nine-state study on home-based employment—who does it and what they do—and estimates its economic impact on communities. Suggestions for building a supportive environment for home-based and microenterprises are discussed.

The Relationship between the Stages of Exercise Adoption and Other Health Behaviors.

Purpose. To examine the relationship between stage of exercise adoption and the practice of other health behaviors. Design. Demographic, socioeconomic, and health behavior data were collected using a cross-sectional mail survey. Data were collected as part of a larger employee benefits research study. Setting. Montana State University-Bozeman, Bozeman, Montana. Subjects. University employees (n = 1269) comprised of 46% men with a mean age of 44 years. Measures. Demographic and socioeconomic data included age, sex, marital status, level of income and education, dependent status, and job classification. Stage of exercise adoption classifications were based on self-reported responses to four exercise statements. The health behaviors included in this study were cigarette and smokeless tobacco use, seat belt use, alcohol use, and use of stress management practices. Logistic regression analysis was used to determine if stage of exercise predicted the presence of each of the health behaviors while controlling for demographic, socioeconomic, and other health behavior variables. Results. The survey response rate was 68%. Respondents in action exercise stage (p = .0367) were less likely to smoke cigarettes than respondents in precontemplation stage of exercise. Respondents in contemplation (p = .0419), preparation (p = .0060), action (p = .0432), and maintenance (p = .0006) were more likely to use seat belts than respondents in precontemplation. Respondents in maintenance (p = .0059) were more likely to use regular stress reduction techniques than respondents in precontemplation. Conclusions. Although longitudinal research is needed to determine any causal relationships, this research suggests that encouraging individuals to become more involved in exercise could indirectly influence other health behaviors. Hence, exercise could be a possible “gateway” behavior toward healthier lifestyle practices.

The differences in financial structure between women- and men-owned family businesses

Lenders often are faced with the challenge of evaluating the financial success of a business or a proposed business by examining the financial records of the household, reasoning that an assessment of the households financial position should be a plausible indicator of the financial status of the business. Utilizing data from the recently released Family Business Survey, this study uses financial information about both the family and the business to examine the relationship between household financial indicators and business financial indicators for women- and men-owned family businesses. The results suggest that, while household financial statements may be good indicators for men-owned businesses, they appear to be much less reliable for women-owned businesses.