Exploring the determinants for a successful family entrepreneurship: Empirical evidences from Punjab Province

Family businesses are the main entrepreneurial powers of today in the global economy, but the low survival rate is the main concern all over the world. Family entrepreneurship is the most successful business, where assets, personal involvement, and hired temporary employees help to improve the success of the business. Family businesses contribute about 45-75% to Gross Domestic Product (GDP) and provide job opportunities in many countries. The objective of this study is to examine the factors that influence the success of family businesses and family entrepreneurs’ characteristics. The study was conducted in Faisalabad and Lahore of the Punjab Province. A sample of 150 respondents was selected randomly (75 from each city). A pretested questionnaire was used to collect data from respondents through personal interview. Independent variable (family and business characteristics) was tested to forecast the business success (dependent variable). Regression analysis indicated that some family and business characteristics (age, managerial activities, business size, business problems, personal involvement) were positive and significantly associated with business success; education, work experience, availability of finance were negative and statistically non-significant; gender, and community support were positive and non-significant. This study suggests that appropriate training program should be introduced to improve skill and acknowledge of family entrepreneurs, so that they can operate their business efficiently.   Key words: Family business, business success, regression analysis.