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Factors Associated with Long-Term Survival of Family Businesses: Duration Analysis

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Abstract

This study identified factors influencing family business survival using National Family Business Panel and Spatial Hazard Events and Losses data. Sustainable Family Business Theory guided the use of a parametric duration model of long-term survival. Community characteristics, family achievements, family processes during change, business and owner characteristics, and business processes during stability affected long-term survival. Economic vulnerability of rural counties, family income from business, hiring temporary help, business size, viewing business as a way of life, and owner experience were associated with increased duration of business survival. Being home-based, a female owner, and customer-focused were associated with decreased duration of survival. Some family processes and achievements increased the duration of business survival; none decreased it.

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Acknowledgments

This material is based upon work partially supported by the National Science Foundation under Grant No. CMS-0625326. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of the National Science Foundation. The results reported in this paper also use data collected by Cooperative Regional Research Project NC-1030, partially supported by the Cooperative States Research, Education, and Extension Service (CSREES); U.S.D.A, Baruch College, the experiment stations at the University of Hawaii at Manoa, University of Illinois, Purdue University (Indiana), Iowa State University, Oklahoma State University, University of Minnesota, Montana State University, Cornell University (New York), North Dakota State University, The Ohio State University, Utah State University, and the University of Wisconsin-Madison. Any opinions, results, and conclusions are solely those of the authors.

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Authors and Affiliations

  1. Department of Consumer Sciences, The Ohio State University, Campbell Hall 265B, 1787 Neil Avenue, Columbus, OH, 43210, USA

    Kathryn Stafford

  2. Department of Housing and Consumer Economics, Georgia State University, 104 Consumer Research Center (House C), 415 Sanford Drive, Athens, GA, 30602, USA

    Vibha Bhargava

  3. Department of Family Social Science, University of Minnesota, 290 McNeal Hall, 1985 Buford Avenue, St. Paul, MN, 55108, USA

    Sharon M. Danes & Katherine E. Brewton

  4. Department of Agricultural Economics and Economics, Montana State University, 210E Linfield Hall, Bozeman, MT, 59717, USA

    George Haynes

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  1. Kathryn Stafford
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Correspondence to Sharon M. Danes.

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Stafford, K., Bhargava, V., Danes, S.M. et al. Factors Associated with Long-Term Survival of Family Businesses: Duration Analysis. J Fam Econ Iss 31, 442–457 (2010). https://doi.org/10.1007/s10834-010-9232-1

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