Fund management in family businesses
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Date
2014
Authors
Visagie, G. M.
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Free State
Abstract
The South African economy depends to a significant extent on the continuity and
success of family businesses as they have the ability to generate significant wealth
and jobs on a much larger scale than any other business. It is therefore very
unfortunate that family businesses that form such a vital part in the economy of
SOUTH AFRICA have such a low success rate. One of the main contributing factors
to the low survival rate of FBs is the lack of or non-existence of proper fund
management and governance that have an influence on the financial sustainability of
these businesses. This field study examined the importance of implementing new
systems and procedures as identified by management and staff of the family
businesses with the aim of improving fund management, in order to ensure
increased sustainability in family businesses.
Furthermore, this field study identified and discussed specific benefits and
implications of a well-established fund management culture. The researcher used a
mixed method approach in analysing present fund management practices in family
businesses. Questionnaires, focus group interviews and individual interviews with
the executive management and family members of family businesses were applied
to identify areas of improvement within the fund management model, together with
the participants’ views of how improvements can be addressed.
Subsequently, the researcher applied the findings to identify practices that are
required as part of efficient fund management to formulate a model fundmanagement
framework that family businesses can implement and maintain to
ensure increased sustainability in family businesses.
Description
Keywords
Family-owned business enterprises -- South Africa -- Management, Family-owned business enterprises -- South Africa -- Succession, Finance, Dissertation (MBA (Business Administration))--University of the Free State, 2014