Source: PURDUE UNIVERSITY submitted to
FAMILY BUSINESS VIABILITY IN ECONOMICALLY VULNERABLE COMMUNITIES
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
TERMINATED
Funding Source
Reporting Frequency
Annual
Accession No.
0162648
Grant No.
(N/A)
Project No.
IND082046R
Proposal No.
(N/A)
Multistate No.
NE-167
Program Code
(N/A)
Project Start Date
Oct 1, 1999
Project End Date
Sep 30, 2006
Grant Year
(N/A)
Project Director
Schrank, H.
Recipient Organization
PURDUE UNIVERSITY
(N/A)
WEST LAFAYETTE,IN 47907
Performing Department
CONSUMER SCIENCE & RETAILING
Non Technical Summary
Some communities are considered vulnerable because of their geographic location or high out-migration of youth. Other communities, such as agricultural commities that depend on exports of foreign countries, particularly the Pacific Rim, might be classified as vulnerable due to internationl currency volatility or unfavorable trade practices. The purpose of the proposed research is to study the interactions among family, business, and community systems in economically vulnerable communities over time.
Animal Health Component
(N/A)
Research Effort Categories
Basic
50%
Applied
50%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
8016020310065%
8036110301035%
Goals / Objectives
1. To compare the interaction of family systems and business systems in economically vulnerable and nonvulnerable communities. 2. To identify effects of community structure and characteristics on families and their businesses. 3. To estimate the economic and social contributions of family businesses to communities over time.
Project Methods
Community characteristics will be used to develop a variety of possible measures of economic vulnerability. Each household will be assigned a score representing the economic vulnerability of the community in which it was located in 1997 when the data was gathered. Households could be classified as being either in an economically vulnerable community or in a community that is not economically vulnerable, or the scale could be used as a continuous variable in multivariate analyses. In the second year of the proposed project, the 1208 individuals interviewed in 1997 (i.e., the business managers and household managers from 794 households plus 414 households in which these managers were not the same individual) will be administered a second telephone interview in the fall of 2000.

Progress 10/01/99 to 09/30/06

Outputs
OUTPUTS: Over 13 million U.S. households own at least one family business. The purpose of this research was to develop understanding of the relationship between family functioning and business viability in families who own and operate businesses, and in the second phase, to understand how family businesses and their communities impact each other. The multi-state project collected generalizable data from a random sample of households in which at least one member owned a business. The respondents to the survey were drawn from a household sample, not a business sample as most other data bases on business are drawn. This allowed the research to focus on the sustainability of the family in addition to the business and the community. Two waves of panel data were collected (one in 1997 and the other in 2000) from 794 respondents (a 71.1% response rate). Both the business manager and the household manager were interviewed. Two additional surveys were conducted by Purdue. The first was a study of Indiana family firms drawn from a business sample, and the second an assessment of the number of Purdue freshman students whose parents owned family businesses. The multi-state group has been productive in disseminating its work. As of mid 2006, five special issues of academic journals; 103 refereed journal articles and book chapters; two books; 135 nonrefereed articles, Extension publications and conference proceedings; two major conferences and a luncheon workshop for business owning families; and a funded NSF grant were produced. Papers were presented at regional, national and international conferences of family economics, family business, and general business scholarly organizations. Purdue offered family business course in CSR, a one-time graduate course in CDFS on family business consulting, a website, an on-campus program for business owning families, and information at the Farm Progress Show were provided. A family business minor was offered. Several presentations on owning a family business were made in the local SBDC program and a video on management transfer was produced. The 1997 multi-state study questionnaire and methods were used by the Panel Study of Entrepreneurial Dynamics as a pattern for a panel study (University of Michigan) supported by the Kauffman Foundation for Entrepreneurship. The NC 167 project has been recognized for excellence. It received the Northeastern Regional Agricultural Experiment Station Directors Research Award for Excellence. Its household sampling approach has been hailed by others as groundbreaking: (Astrachan and Kurtz, 1998 wiring in the Family Business Review described the 1997 data collection as "one of the biggest methodological breakthroughs since the founding of the family business field (p. v.). In his book Databases For the Study of Entrepreneurship, Katz (2000) stated that it represents "the leading edge in data generation for secondary analysis, with carefully selected samples, carefully developed instruments and combined intellectual efforts of literally dozens of researchers across the country" (p. 3). In addition, 167/1030 was a featured project at the Federal level in the 2007 budgeting process for USDA. PARTICIPANTS: Holly Schrank was project director. The Coleman Foundation provided $25,000 which funded research on Indiana family firms, production of a video on management transition in the family firm, and a meeting of family firm owners and family members drawn from the Purdue and Greater Lafayette communities. Collaborators include Tansel Yilmazer (CSR), who worked with the project director on two publications. Maria Marshall (AGEC)and Schrank are working on a joint publication as well as serving as Co-PIs on two NSF grant applications. The project provided research based information for a family business undergraduate course, a graduate course in family business consulting and therapy, training for a graduate student with a particular interest in family business, and a half-day conference for owners of family businesses and their family members. TARGET AUDIENCES: Small business counsellors and financial advisors

Impacts
The work of this project has provided considerable change in knowledge about family businesses and their economic vulnerabilities. The scholarly innovations of the multi-state project include the following: 1) first panel data on family firms using a household sampling frame; 2) first nationally representative sample on family firms; 3) development and testing of the systems theory based Sustainable Family Business Theory; 4) a 71.1% response rate due to careful procedures(this compares to 2-20% of other family firm studies); 5) developed an Economic Vulnerability Index that uses data from many sources to characterized community vulnerability and allows linkage of NE 167 family, business and community data with county FIPS codes; 6) demonstrated that the health of the family affects the health and sustainability of the business, but not vice versa; 7) demonstrated that not all business attrition can be considered failure, sometimes owners chose to close their businesses for reasons other than lack of success. Therefore, the rate of small business failures is probably overestimated; 8) demonstrated that about 1/3 of family businesses studied used household resources to support the family business making the family business a significant household investment, but providing little risk protection for the household; 9) showed that owners of family firms are important contributors to their communities in terms of financial assistance, technical expertise, public office, and donation to local school and youth programs. This was particularly true in communities that were more vulnerable economically; 10) the research has clearly demonstrated that Indiana family firms operate with a variety of boundaries (weak to strong) between the family and the firm, but based on the data most prefer weak boundaries. Because of this preference, research on family firms must include family data in order to fully understand business decisions made by the owners in the context of both business and family considerations; 11) multiple universities collaborated to raise a total of $700,000 to accomplish the goal of data collection; 12) demonstrated the benefits of synergy and productivity that can be generated from a inter-disciplinary, multi-state research effort. Based on the findings of this project, it is clear that public policy needs to support family firms in their communities. For example, family firms give philanthropically in a variety of ways, most of which do not result in tax savings (compared to large firms that funnel their money to communities through large non-profit foundations). Family firms should be encouraged to grow in communities, and greater development effort should be put toward their growth and not just toward recruiting large businesses into the community. Further study should be undertaken to assess how effectively public policy supports families and their firms. The owners of these firms live and work locally and serve the local community in a variety of ways. Public policy should encourage this sector of the economy in every way possible as a means of helping communities, families and businesses to flourish and be sustainable.

Publications

  • Fitzgerald, M. A., Haynes, G. W., Schrank, H. L. and Danes, S. M. (2007 submitted). For-Profit Family Businesses as Socially Responsible Organizations: Evidence from the U. S. National Family Business Survey. Journal of Small Business Management.
  • Yilmazer, T. and Schrank, H. (2007 submitted) Observations on the Use of Owner Resources in Small and Family Businesses. Entrepreneurship & Regional Development.


Progress 10/01/05 to 09/30/06

Outputs
Many families who own businesses find it difficult to maintain boundaries between the family and the business. Family resources and assets are likely to be used to start the business, family members work in the business (sometimes unpaid), and business income helps to support the family. At least initially, there may be few boundaries between family and business and this may not be perceived as a problem. However, as businesses grow, the lack of strong boundaries may emerge when roles become confused and money and power are at stake. We approached this boundary issue from two perspectives. First, it was important to assess the extent to which Indiana business owners maintained boundaries between the business and family, and to determine whether the present boundardies were workable or were creating conflict. We found that business owners who were satisfied with their businesses were also satisfied with the boundaries even if the boundaries were weak ones. The data make clear that some of these satisfied owners maintain strong boundaries, and others do not...there is a continuum. The practitioner/consultant literature suggests that strong boundaries are essential to a healthy family business. The data, however, suggest that Indiana family owners may be satisfied with weaker boundaries at the present time. However, they may face problems later when it will be too late to head off the problems that ultimately emerged as a result of weak boundaries. Business owners who maintained weak boundaries and were experiencing problems were not satisfied with their businesses. The second area of study this year involved examining the extent to which family resources and assets were used in the business and business resources and assets were used by the family. Using a large nationwide sample, we found that about 1/3 of businesses studied (whether they were small or medium sized or family/non-family) were intermingling family and business assets. The majority of intermingling involved using family assets to support the business. About 2-3% of families were using assets of the business for personal use (excluding wages and salary). The use of family assets in the business is not uncommon, owner resources are a main source of capital for start-ups. Until the start-up has a track record and is producing a steady revenue stream, it is unlikely to attract other forms of capital. However, the data indicate that there are a significant number of firms well beyond start-up who are still using family assets (e.g. using family property as collateral for business loans, or owing the family money--an unpaid loan). It appears that the assets of the family and business pass back and forth, and that this intermingling is somewhat dependent on the net worth of the household and the net worth of the business. In short, financial boundaries appear to be weak in some businesses well beyond the start-up stage.

Impacts
It is apparent that a signficant number of business owners are not heeding the call for strong boundaries. While they may be currently satisfied, problems inevitably erupt at management transitions between family managers, at the time of settling estates (ownership transition), or when a family member does not perform well on the job. The use of household financial resources in the business represents weak boundaries, particularly after the business has a stable revenue stream. There is little financial protection for the household against loss of investment or lower gains. Furthermore, use of business assets by the household is an added expense to the business with little or no return. Use of business assetss for family purposes increases business expenses and does not contribute revenue. It may even detract from the ability of the business to use that asset to earn revenue. If a business owner uses business property as collateral for a personal loan for a household member, the risk of default is placed on the business and the business asset may be lost of the household member defaults on the loan. The examples above are examples of weak financial boundaries. While household and business may use separate banking accounts and checkbooks, business owning households are still finding ways to intermingle financial resources and assets. The practice of intermingling also limits management's ability to use financial ratios to obtain an accurate picture of business performance. Our results suggest that many of these firms are headed for trouble in the future.

Publications

  • Yilmazer, T. & Schrank, H. (2006) Review of Financial Bootstrapping and Intermingling in Small and Family Businesses. Refereed Paper presented at the EIASS Family Firm Conference, Nice, France, June, 2006.
  • Heck, R., Danes, S., Fitzgerald, M., Haynes, G., Jasper, C., Schrank, H., Stafford, K., & Winter, M. (2006). The family's dynamic role within family business entrepreneurship. Chapter 5 in Poutziouris, P., Smyrnios, K. & Klein, S. Handbook of Research on Family Business. Elgar Publishing, Cheltenham Glos, UK.
  • Zody, Z., Sprenkle, D., MacDermid, S. & Schrank, H. (2006). Boundaries and the functioning of family and business systems. Journal of Family and Economic Issues, 27:2, 185-206.
  • Yilmazer, T. & Schrank, H. (2006). Financial intermingling in small family businesses. Journal of Business Venturing, 21:5, 726-751.


Progress 10/01/04 to 09/30/05

Outputs
The emphasis this year has been on relating findings to community characteristics, particularly rural/non-rural and socio-economic vulnerability. A community vulnerability scale developed for this project was applied to an analysis of the determinants of family business social responsibility. Specifically, we were interested in learning what factors contributed to businesses and their owners providing financial assistance, providing technical expertise, serving in elected office, and donating to local school and youth programs (four examples of social responsibility). We learned that 85% of the family businesses contributed in at least one of these four ways. The education of the owner and the age of the business were significant predictors of the likelihood that some type of assistance was given (i.e. the business exercised "social responsibility" in the community). Social responsibility was greater in intensity when the community was rural and vulnerable. It appears that business people recognize a need and attempt to fill it according to their means and the nature of their expertise. Most family businesses find ways to contribute time, financial resources or expertise in their communities. Because these contributions are valuable assets, it is important that business contributions be measured in some way that would enable communities to determine whether they are adequately tapping the available business resources. Business contributions that are not funneled through a foundation are generally uncounted and unrecognized, yet the majority of business are small or medium in size and do not have foundations, and 85% of them contribute in one form or another. It is also key that public policy support, encourage and reward these contributions so that no policy barriers are placed before businesses willing and able to contribute. This analysis was presented at an international conference in Sept. It was interesting to learn that social responsibility is defined differently outside of the U.S. Businesses in other countries are generally not called upon for contributions, in most cases the governments addresses these needs with tax monies and/or the need goes unmet. This suggests that it is very important to understand the development of a "giving heart" in the United States, and how and why businesses may give to their communities, since philanthropy is a primary source of support to meet needs in this country (particularly in rural vulnerable communities) and businesses are a primary source of it. A book chapter for a Family Business Research Handbook, to be published by Elgar Publishing was completed this year. This book will have an impact on academic research and teaching. Two journal manuscripts were completed and accepted. Work is underway that will focus specifically on resource use by farm family businesses. A preliminary proposal to expand the work of NE 167 is in preparation. Significant time was spent this year reviewing literature with a focus on the impact of disruptions (e.g. disasters) on families and their businesses.

Impacts
Community agencies in rural and vulnerable communities could benefit from resources that family businesses can contribute, and need to recognize other forms of potential resources than money. Business owners and employees often have the ability to contribute time, expertise and money that may be untapped by community agencies who focus on monetary fund-raising. Understanding of how these resources could be tapped and used will help communities to reduce vulnerability.

Publications

  • No publications reported this period


Progress 10/01/03 to 09/29/04

Outputs
This year was spent analyzing data and writing and revising manuscripts. The focus was on 1) assessing family satisfaction and business success, and 2) characterizing the extent to which families intermingle their household and business funds, and the household, business and owner variables that are associated with intermingling by cosigning for business loans, or by lending household assets to the business. Results demonstrate that there are varying levels of satisfaction with the family's business that are not necessarily related to the characteristics of the business. In short, not all households view their business results through the same lens. In terms of financial intermingling, we found household characteristics other than household net worth were not good predictors of the likelihood of intermingling. Instead, business characteristics such as business net worth, net income, education of owner/respondent, and number of employees were better predictors of the likelihood of intermingling. We compared family businesses to non-family businesses and found few differences in the factors related to intermingling. It appears that financial intermingling is not unique to family businesses, nor more likely to occur in family businesses. In addition, it is not necessarily limited to businesses in early start-up stages. Businesses of all sizes owed money to the owner's household suggesting either that household to business lending continues over long periods of time, or that businesses are not repaying debts to their owner's household in a timely fashion.

Impacts
Some spillover does exist from family to businesses (e.g. role confusion, financial intermingling, variation in satisfaction with the business), and families and their businesses may be at less risk if spillover is contained and boundaries that are satisfactory to the family members are maintained. Intermingling of finances between household and business can have an undue impact on the household at the same time that it supports the business. Recent reports have demonstrated that family businesses may be better performers than non-family businesses, therefore, it is important to understand how the presence of family in the business changes the business itself.

Publications

  • McCann, G., Hammond, C., Keyt, A., Schrank, H., Fujiuchi, K. (2004). A view from afar: A rethinking of the director's role in university based family business programs. Family Business Review, XVII, 2.


Progress 10/01/02 to 09/30/03

Outputs
The purpose of this research project is to study the interactions among family, family businesses, and community systems in economically vulnerable communities over time. Data have been collected over time, and an economically vulnerable community scale has been developed and tested. Work has been accomplished on the interaction between family and family businesses from the first data collection, and is now shifting to examination of these interactions over time, and whether the interactions between family and family business differ with the economic vulnerability of the community. Findings to date indicate that the health of the family is an important factor affecting the success of the family business, but that the health of the business does not have a similar impact on the health of the family. In addition, household financial resources are used directly or indirectly by about 1/3 of family businesses studied to support the family business, but only 2-3% of family business resources are used to support families (beyond salaries and wages).

Impacts
Family businesses would benefit from training focused on good business practices, as well as from learning to use family strengths to enhance the business. Some spillover does exist from family to businesses (e.g. role confusion, financial intermingling), and families and their businesses may be at less risk if spillover is contained and boundaries that are satisfactory to the family members are maintained.

Publications

  • Owen, A. and Schrank, H. (2003). Family types. In A Toolkit for Home-Based Entrepreneurs. Proceedings of the Lawrence N. Field Center for Entrepreneurship and Small Business, Zicklin School of Business, Baruch College, CUNY, New York: New York: April, 54-65.


Progress 10/01/01 to 09/30/02

Outputs
A business based study of Indiana family business owners to focus on family and business functioning was conducted, resulting output to date is one master's thesis, one international presentation, and 5 manuscripts in preparation. The majority of the respondents were male (78%). The largest percentage of employees was the category of 20 to 99 employees (28%), the average was 57. Seventy-three percent of the family business had been in business over 20 years, averaging 36 years. Anecdotal evidence suggests that most problems in family businesses are due to spillover. Spillover between the family system and the business system (home to work and work to home) was expected to have a negative influence on the success of the family and business and on satisfaction with both. But does maintenance of system boundaries lead to more successful outcomes for the business and family? Our results indicate that it does. Less home to work spillover was associated with less stress. Better family communication was found to be associated with greater satisfaction and with less stress. Better business practices were associated with better business outcomes, but there was an interaction effect with co-mingling of home and business finances that reduced business outcomes. Minimizing spillover (and maximizing communication) increases likelihood of success for both family and family business. Family communication seems to contribute to some indices of business health, and business practices seem to contribute to some indices of family health offering some empirical evidence that what is good for the business is also good for the family. Our results suggest that the business should be run like a business (and not like a family), that co-mingling of family and business finances can hinder success, and high communication is important to the success of the family and its business. A brief survey was sent to the parents of incoming Purdue freshman. Some of these families have multiple family businesses. The oldest business was founded in 1820 and is in its 5th generation. Nearly 2/3rds have been in operation more than 12 years. Ninety-nine percent were majority owned by 1 family. Sixty-four percent of these businesses already employ 2 generations, although the majority were still in their 1st generation of ownership (75%). In fact, nearly half employ 3 or more family members. It is likely that most of these businesses have yet to go though management and ownership succession and thus are in need of information on succession. Second generation ownership was represented by 18% of respondents, and only 6% were in their 3rd, 4th or 5th generation of ownership. One third of the respondents were single owner businesses. Two thirds of the respondents reported the company revenues to be in the range of zero to one million. Twenty-seven % ranged from one to ten million and 10% were companies with annual revenues of more than ten million dollars. These companies are ripe for information not only on succession, but also on integrating family into employment, management and ownership in the company.

Impacts
Family business owners can easily make inadvisable business decisions. For example, they may hire family members who are underqualified and overcompensated, or co-mingle family and business funds. Purdue provides family business education to undergraduate and graduate students, and to family business owners. This year, 120 students gained the basic tools they need to understand best practices in family business. A website has been established for students. CDFS taught a course on family business consulting during Spring 2002. Career directions of several of these future therapists were impacted, and students identified experiences needed (e.g. business knowledge) to prepare themselves to be effective family business advisors. A Family Business undergraduate minor was established. Family business education was offered to family business owners through a website, through on-campus educational programs, and through the Farm Progress Show. An on campus program gave 65 family business owners opportunity to consider family hiring issues. One owner commented that he and his family had learned the importance of communicating. 'If you don't, it's one issue that can turn into so many different things. We see that on a nearly daily basis at our own family business.' Presentations were also made to alumni and friends of Purdue, and adult learners in a local SBDC program. An SBDC participant commented that he never realized there could be consequences of hiring a family member. The website address is: http://www.cfs.purdue.edu/csr/ifb

Publications

  • No publications reported this period


Progress 10/01/99 to 09/30/00

Outputs
In more than 13 million U.S. households, at least one individual is the owner-manager of a family business. The effects of the business on the family and vice versa is crucial for understanding factors related to both business and family viability. Data from a national sample of 794 households in which at least one individual is the owner-manager of a family business are being analyzed by researchers at 16 different states to accomplish this purpose. The respondents to this survey are drawn from a household sample, not a business sample as most other data bases on business is drawn. This has allowed the research to focus on the sustainability of the family in addition to the business and the community. The work of the current year for the project has consisted of analyzing data from the 1997 survey with respect to the manner in which family members interact in their every day lives. It is expected that an understanding of this interaction styles and being able to examine the match between these family styles and types of business will be a predictor of sustainability of family business in the reinterview phase of the research. Researchers have also collected and analyzed a mail survey of Indiana businesses for family interaction style and boundary issues in the family business. Currently researchers are using the Indiana study, the family questions on the 1997 survey and the updated theoretical work on family paradigms (conducted at Michigan State by Dr. David R. Imig), to build an assessment instrument specifically for business owning families. This year's efforts have also included the development of the survey instrument for the second wave of data collection from the sample, currently being conducted. The current phase of the research is to reinterview these respondents to the 1997 survey in order to determine the extent to which businesses and the communities in which they reside are interdependent in terms of sustainability.

Impacts
In more than 13 million households, at least one individual is the owner/manager of a family business. Study of the interaction styles of business owning families can assist them in understanding conflict that may arise due to their type of business not matching the ideals that they have for what constitutes a satisfying family life.

Publications

  • Heck, R.K.Z., Jasper, C.R., Stafford, K., Winter, M., & Owen, A.J. (2000) Using a household sampling frame to study family businesses: The 1997 National Family Business Survey, In J. A. Katz (Ed.), Advances in Entrepreneurship, firm emergence and growth (Vol. 4). Stanford, CT: JAI Press, pp. 229-288.


Progress 10/01/97 to 09/30/98

Outputs
A preliminary analysis of the data showed that 794 households had completed interviews, resulting in a 71.1% response rate. A comparison of sample characteristics between the family business study and the 1995 Survey of Consumer Finances collected for the Federal Reserve Board by the National Opinion Research Center at the University of Chicago, found age, gender, ethnicity, household size, home ownership, census region, and number of employees remarkably similar between these two data sets. Educational levels are substantially different, with family business owners having more advanced education beyond high school than all business owners in the SCF sample. In addition, SCF business owners have higher household incomes, save less, and own more expensive homes than family business owners. However, gross business sales and business net operating profit are substantially higher for business owners in the SCF sample compared to family business owners. Family business owners have businesses valued lower than those in the SCF sample, are more prevalent in retail trade, and have greater longevity. Moreover, there appears to be less co-mingling of funds between business and the family for family business owners than business owners in the SCF sample. However, rural and small town businesses are more likely to intermingle resources than urban business, are more likely to borrow money from the family, more likely to use family income to meet business cash flow needs and are more likely to use unpaid family labor.

Impacts
(N/A)

Publications

  • Winter, M., Fitzgerald, M., Heck, R.K.Z., Haynes, G.W., & Danes, S.M. 1998. Revisiting the study of family businesses: Methodological challenges, dilemmas, and alternative approaches. Family Business Review.
  • Rowe, B.R., Haynes, G., & Stafford, K. , 1998. The contribution of home-based business income to rural and urban economies, Family Business Review.
  • Haynes, G.W., & Watts, M. 1998. Finance companies and small business borrowers: An empirical investigation. Journal of Entrepreneurial and Small business Finance.
  • Haynes, G.W., & Avery, R.J. 1998. Family businesses: Can the family and business finances be separated? Journal of Entrepreneurial and Small Business Finance.
  • Books: Hennon, C.B., Loker, S., & Walker, R. (Eds.), 1998. Gender and home-based work. Westport, CT: Auburn House.


Progress 10/01/96 to 09/30/97

Outputs
The purpose of this research is to develop an understanding of the relationship between family functioning and business viability in families who own and operate businesses. The committee has grown to encompass 17 states (from all 4 USDA regions) and a Canadian province with 25 researchers working on the project. Two meetings were held this year, one in Ames, Iowa, which allowed committee members to interact with the persons doing the telephone survey and to refine the survey instrument, and one in Madison, WI to address problems with the collection of financial information in the questionnaires, to elect new officers, and to assign subcommittee projects for the coming year. Data collection is expected to be complete in March or April. The Iowa State Stat Lab is calling part of the sample each month to eliminate any bias created by the time of the year data are collected. Cleaned data will be shipped on tape or downloaded shortly thereafter. Informal small groups have been assigned to give leadership to variable annotation, thematic journal editorship, conference panel submissions, conceptual paper development and data structure issues. All committee members are expected to complete and return manuscript preparation guidelines and to provide leadership for data analysis and manuscript writing. The project was granted a one year extension by CREES, making the termination data September 30, 1999. The next meeting will be held June 7, 8, and 9, 1998 at Purdue University in West Lafayette, IN.

Impacts
(N/A)

Publications

  • Journal Articles: Rowe, B. R., Haynes, G., & Stafford, K.,in press, 1997. The contribution of home-based business income to rural and urban economies, Family Business Review.
  • Haynes, G.W., & Watts, M., in press, 1997. Finance companies and small business borrowers: An empirical investigation. Journal of Entrepreneurial and Small Business Finance.
  • Haynes, G.W., & Avery, R.J., in press, 1997. Family businesses: Can the family and business finances be separated. Journal of Entrepreneurial and Small Business Finance.
  • Books and Book Chapters: Hennon, C.B., Loker, S., & Walker, R. (Eds.), in press, 1997.. Gender and home-based work. Westport, CT: Auburn House.
  • Upton, N.B., & Heck, R.K.Z., 1996. Does your family business know who it is. How to uncover your family's spirit, identity and history. In D.E. Gumpert (Ed.), Family business best practices (Chapter 8). St. Louis, MO: Ewing Marion Kauffman Foundation.
  • Winter, M., & Morris, E.W., in press, 1997. Family resource management and family business: Coming together in theory and research. In R.K.Z. Heck, The entrepreneurial family. Needham, MA: Family Business Resources Publishing.
  • Doctoral Dissertations and Master's Theses: Chen, L.O., 1996. Home-based workers and their satisfaction with quality of life: Selected focuses on business owners and gender difference. Unpublished master's thesis, Cornell University, Ithaca, NY.
  • Maldonado, L., 1996. Home-based family business net annual income and its relationship to business, family, owner-manager, and environmental characteristics in the United States. Unpublished doctoral dissertation, Michigan State University, East Lansing.
  • Zuiker, V., 1997. The ability of self-employment to support Hispanic households in the Southwest at a level above poverty. Unpublished doctoral dissertation, The Ohio State University, Columbus.


Progress 10/01/95 to 09/30/96

Outputs
The purpose of this research is to develop an understanding of the relationship between family functioning and business viability in families who own and operate businesses. The committee has grown to encompass 17 states and a Canadian province with 25 researchers working on the project. At the annual meeting in October, drafts of both the business and family manager questionnaires were distributed and discussed in conjunction with the project's objectives. Final copies of the questionnaires, designed for CATI coding, will be distributed in February. A memorandum of understanding has been signed with Iowa State University's Statistical Laboratory and Survey Research Center to collect the data, who submitted a final project estimate of $300,000 for 200 telephone interviews per state (the follow-up mail questionnaire has been eliminated). About half that amount has been raised. Over the summer, 25 foundations were solicited for outside funding for data collection. Efforts for state-wide funding continue, with March 15 the cut-off date for states wishing to continue with the project. The first chapters for the gender book based on data from the original project were finished over the summer. Committee members have presented papers at a number of conferences including the International Family Business Program Association meeting in Santa Monica, Conference on the Entrepreneurial Family supported by the Family Business Research Institute, and the 3rd annual Home-Based Business Conference in Milwauke.

Impacts
(N/A)

Publications

  • Montalto, C.P., Olson, P.D., & Stafford, K. (1995). At home, but worlds apart: Gender influence on home-based business income. Manuscript submitted for publication.
  • Olson, P.D., Fox, J., & Stafford, K. (1995). Are women who own home-based businesses installing their own glass ceilings Manuscript submitted for publication.
  • Rowe, B.R., & Haynes, G., & Stafford, K. (in press). The Contribution of Home-Based Business Income to Rural and Urban Economies. Economic Development Quarterly.


Progress 10/01/94 to 09/30/95

Outputs
The purpose of this research is to develop an understanding of the relationship between family functioning and business viability in families who own and operate businesses. The committee has grown to encompass 15 states with 31 researchers working on the project. Two meetings have been held to move the committee forward with its two goals 1) proposal writing for outside funding and 2) questionnaire construction. A proposal was completed and potential sources/foundations are being approached. An Entrepreneurial Research Consortium has approached the committee about combining their screen for nascent entrepreneurs with ours. This would reduce the total amount of funds required for the project. At the annual meeting in October, drafts of both the business and family manager questionnaires were distributed and discussed in conjunction with the project's objectives. A special subcommittee is meeting in Ohio in December to flesh out both schedules and prepare them for CATI coding. A memorandum of understanding has been signed with Iowa State University's Statistical Laboratory and Survey Research Center to collect the data. A subcontract with Purdue University for a follow-up mail-in questionnaire is pending. The first drafts of chapters for the gender book based on data from the original project were collected at the fall meeting. The first book from the original project was published in May. Committee members have presented papers at a number of conferences including the International Family Busin.

Impacts
(N/A)

Publications

  • Masuo, D.M., & Tsutsui-Keuma, J.K. (1995, Summer). Work at Home. Western Wire, 15-18.
  • Rowe, B.R., & Haynes, G., & Stafford, K. (1995, Summer). The Contribution of Home-Based Business Income to Rural and Urban Economies. Western Wire, 11-14.


Progress 10/01/93 to 09/30/94

Outputs
This is the second year of the revised project. The purpose of this research is to develop an understanding of the relationship between family functioning and business viability in families who own and operate businesses. At the annual meeting of the technical committee, the plan of work for the next two years was outlined. Literature review and in-depth interviews to assist in instrument development will be the main focus. Each proposal objective was assigned a team to submit questions to guide the in-depth interviews conducted over the summer. Transcripts of all interviews will be shared with other technical committee members at the 1994 annual meeting in St. Paul, MN. A special issue of Family Business Review devoted to articles on family-owned home businesses submitted by committee members was published in March 1994. Findings from this research will be helpful in enhancing the stability and security of families who own and operate businesses and in developing policies and educational programs that support family businesses and assist in their contributions to community and economic development.

Impacts
(N/A)

Publications