Selection of family business owners' strategy for avoiding the phase of decline in the business life cycle

• Main Author: Arsić Siniša M.
• Format: Article
• Language: English
• Published: Savez inženjera i tehničara Srbije 2018-01-01
• Series: Tehnika
• Subjects: classification; family company; life cycle
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/0040-2176/2018/0040-21761801127A.pdf

The motivation for testing and comparing the life cycle stages of family companies stems from the fact that 60% of all SMEs in the EU are just family businesses, producing 50% of all jobs. There is a logical conclusion that most of the business activities of developed countries are products of direct or indirect work of family companies. Although numerous studies have dealt with the specificities of the company's life cycle phases, as well as the rules of comparison between companies, there are barely no studies treating variables that announce a declining phase independent of the type of company. More precisely, defining the methods and plan for avoiding the phase of poor business results could not be foreseen in the literature so far. By applying the classification tool (the decision tree), an attempt was made to different views of the world's authors on this subject into this research, in an innovative, measurable and flexible way. The survey was conducted on a sample of family companies in Serbia, and it will be potentially extended to the region.