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Easing the Financial Constraints on Family Firms: from Fatalism toward Action

Par : Contributeur(s) : Type de matériel : TexteTexteLangue : français Détails de publication : 2015. Sujet(s) : Ressources en ligne : Abrégé : This paper offers research notes regarding the link between practices specific to family businesses and their financial constraints. First, the article tries to identify the family business practices that can increase their financing difficulties. It focuses mainly on four key concepts: informational isolation, opacity in financial decision-making, excessive behavioral fatalism, and a lack of succession planning. Secondly, the authors show that the mitigation of financial constraints for this category of firms depends on the ability of managers to secure funding for their growth. This latter issue is based on at least three factors: transparency, the establishment of sound reasoning in decision-making processes, and strategic thinking on the future of the company.
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This paper offers research notes regarding the link between practices specific to family businesses and their financial constraints. First, the article tries to identify the family business practices that can increase their financing difficulties. It focuses mainly on four key concepts: informational isolation, opacity in financial decision-making, excessive behavioral fatalism, and a lack of succession planning. Secondly, the authors show that the mitigation of financial constraints for this category of firms depends on the ability of managers to secure funding for their growth. This latter issue is based on at least three factors: transparency, the establishment of sound reasoning in decision-making processes, and strategic thinking on the future of the company.

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