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This work proposes a model starting from the Three-Circle Model, based on the reality of the small and medium-sized family business sector in the Mexico City Metropolitan Area. The present paper proposes a new model that was built based on the Three Circle Model, but it is based on the reality of the Small and Medium Mexican family business sector. The model does not include the Ownership Subsystem, but it includes the Environment Subsystem, a subsystem that has a vital influence on the life and performance of an organization of that size. These three subsystems intersect in common elements such as culture, economy or company vision, triggering the success or failure of the company itself. The methodology used was a mixed methodology, with both qualitative and quantitative elements. First, the Delphi method was used on a scale that was applied to 25 owners of Small and Medium Enterprises and then, to make an additional confirmation, hypothesis testing, factorial analysis and the technique of structural equations were used. It was seen that the ownership subsystem has a lower weight than the business, environment and family subsystems, is the least relevant.

BFE Model—Business, Family and Environment—As Subsystems of the Family-Owned Business in Mexico City Metropolitan Area