Family In Family Out: Social Capital Entrepreneurs Perspectiveglobalbizresearch.org/Malaysia_Conference/pdf/KL569.pdf · 2015. 8. 6. · (Mohammed bin Abduljalil Al Fahim, 2007) describe

Proceedings of the Fourth Asia-Pacific Conference on Global Business, Economics, Finance

and Social Sciences (AP15Malaysia Conference) ISBN - 978-1-63415-762-9

Kuala Lumpur, Malaysia, 7-9 August, 2015 Paper ID: KL569

www.globalbizresearch.org

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Family In – Family Out: Social Capital Entrepreneurs Perspective

Hernani D. Manalo,

Faculty of Business,

Abu Dhabi Men‘s College, UAE.

[email protected]

Ma. Riza T. Manalo,

Graduate School Faculty,

University of Negros Occidental-Recoletos, Philippines.

[email protected]

__________________________________________________________________________

Abstract This qualitative exploratory study focuses on how Family In and Family Out concept worked

as a social capital entrepreneur’s perspective. Chosen by purposive sampling, 26 Emirati

Entrepreneurs, 3 of whom are females and 23 males, aging 21 to 75, and all having

enterprises in Abu Dhabi, were interviewed using a validated open-ended questionnaire. The

records of interview were encoded and interpreted using mode and percentages, and rank

analysis was applied. Findings revealed that dream or ambition, influence, adventure, and

jobs have greatly influenced families to become entrepreneurs. Moreover, independence,

technical skills, jobs, trust or conflict issues, and home priority were the reasons for the

practice of Family Out concept. In addition, the natural desire to help, voluntarism, business

skills, and family responsibility were the reasons for practicing the Family In concept.

Entrepreneur’s age, gender, business status, and the type of business organization affect their

choice of enterprise concept. The social capital contributions of Family In entrepreneurs

include sales, networking, planning, administration, technical skills, and procurement and

management of funds. Family Out entrepreneurs hire qualified and competent staff, build

social network of people, and adopt other approaches like excellent services, advertising,

quality products, and competitive pricing. Findings also show that these entrepreneurs were

very satisfied in meeting their business goals. The study is expected to help enrich the

literature in entrepreneurship in the United Arab Emirates.

Key words: Social Capital Perspective, Family In, Family Out, Emirati Entrepreneurs





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1. Introduction

Are families -owned and managed firms more rationally and effectively managed by their

owners than other businesses? In some cases, blood and business seem incompatible. Such

problem has been indicated in family-owned businesses in the Western world. For instance,

the animosity between brothers, Adolf and Rudolph Dassler of Addidas resulted in the

creation of Puma brand, a brainwork of Rudolph. The Gucci family scandal has headlined

various tabloids. Lately, the famous celebrity Chef Gordon Ramsay fired his own father-in-

law from their family business. Stories of aggression among family have caused business

disintegration and even inevitable conflict and torment among families.

Fortunately, not all family-owned businesses are characterized by conflicts. Many of

them have existed harmoniously and have established family pride. In fact, experts argue that

family‘s participation in business is crucial to its existence and growth. The long-term

orientation, loyalty, and strong commitment to quality are related to the soundness of the

family name, and care and concern for employees who are often likened to an extended

family‖ (Kleiman and Peacock, 1996). ―More than 90 percent of the companies in North

America and a majority of businesses located around the world are family-owned. Some of

the more recognizable businesses managed by family members include Benneton, Beretta,

Estee Lauder Inc., Tootsie Roll, Gucci, Carnival Cruise Lines, Harley-Davidson, Inc., U-

Haul, Ford Models, Forbes Inc., and Ford Motor Co. They vary widely in regard to the

overlap of family and business issues, and much can be learned from studying their

experiences‖ (Encyclopedia for Business, 2nd

Ed.).

One may wonder if the above business conditions hold true in the Arab world. In United

Arab Emirates (UAE), the identity of a family is often used as tool for social connections.

Tribe names are closely associated with various types of businesses. Most of these businesses

have passed from one generation to another. Basing from this tradition, one observes that

strong family participation is almost always the main element in every type of business.

This study is done on a premise set by previous studies on entrepreneurship illustrating

that ―other family members offer a range of benefits while some suggest that family members

can actually constrain entrepreneurial activity‖ (McKeever and Jack, 2005). This research

also investigates the participation of family members (spouse, children, brothers, and sisters)

of selected Emirati entrepreneurs in their business, the value they add to the social capital of

their business, and whether prevalent practice has changed owing to modernity and changing

demography in UAE. The study further inquires why this condition is happening and how this

social capital affects their business.

2. Literature Review

2.1 Family and business





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Family- owned business, possibly the oldest form of business, is prevalent worldwide,

and is recognized to be an important backbone of the worldwide economy due to its

contribution to the global GDP of nearly 70–90% per year (MENA Family Business, 2007).

As unusual business entities, family businesses have been described by Bianco (1998) as

having a long-term concern for family business over generations, strong commitment to

quality, protection of family reputation, and expression of humanity in the workplace where

the care and concern for employees is often likened to that of an extended family. Family

business is a business governed and or managed with the intention to shape and pursue the

vision of the business held by a dominant coalition controlled by members of the same family

or a small number of families in a manner that is potentially sustainable across generations of

the family or families. This definition, however, has raised string of questions like: ―Does the

family have to own 100% or a majority of the business? Does the family have to manage the

business as well as own it? Is the certainty of succession essential, or can it be just a

possibility subject to future developments? Is it necessary for family members to plan for the

future of the business themselves, or can the business be guided externally? Is the size of the

enterprise relevant - turnover, number of employees, and so forth? Is a sole proprietorship a

true "family business" in that it is owned by a member of one family?‖

(www.cornerstoneresults.com).

According to Andrew Drake (2009) there is no legal definition of a family business, and

commentators tend to define family businesses in a variety of ways. He opined that some

authorities consider family business as any business that regards itself as a family business,

even if family members are no longer involved in management and/or ownership. In other

words a family business ethos is enough for the business to qualify as a family business. For

Drake (2009), a more common and narrow definition runs along the following lines: the

family owns a majority of the voting shares or effectively controls the business; one or more

family members (or their spouses) are involved in the management of the business; and more

than one generation is, or will in future, become involved in the business. It is really the last

of these three points that distinguishes family businesses from owner-managed businesses,

because owner-managed businesses are not necessarily passed down to the next generation.

In a practical sense, a business in which ―one or more family members (or their spouses) are

involved in the management of the business‖ would be the most valid definition.

The philosophy behind family firm is often anchored on a personalized mission related to

the integrity of the family name. Successful family enterprises offer family members prestige

and prominence in their communities. To preserve their reputation, Lyman (1991) argues,

family firms are more involved with customer service and more committed to quality than

their non-family counterparts. Exposure to various aspects of the business positively affects





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children. As children grow, they assume new and varied roles, develop skills in the business,

and take on each new role. With positive attitude and encouragement from their parents,

children‘s interest in business is heightened.

A number of factors predispose children to be interested in the family business. First, they

spent time with their father in the business. Most family businesses currently operating in the

United States were started after World War II and were founded by men. As more women

start businesses, children also benefit in this way by spending time with their mother in the

family business setting (Bianco, 1998). This traditional and yet prevalent set up among many

family-owned businesses is what ―family in‖ concept is all about. It simply means that family

members involve themselves in the business affairs of the family. The major advantages of

―family in‖ are strong support network of family members, ability to take a long-term

perspective, quick decision- making, and unparalleled commitment. It is often believed that

family members have more passion and dedication in their very own business than other

people. On the other hand, there are some families that alienate their family members from

their very own business. Instead, they hire non-family members to manage their business,

hoping it will be run more professionally. This scenario can often be traced back to family

history such as conflicts among siblings.

Conflicts among the siblings who run the business or misunderstandings between

different family branches may spill over to the company‘s domain and create problems for

other share-holders (Family Business Governance Handbook, 2008). Quite often, especially

during the early, start-up stages of the family business, the company and family relationships

are not clearly distinguished. This is particularly true with respect to financial relations and

accounts—the company‘s and family‘s assets are not legally separated. This condition causes

problems in distinguishing company-owned assets and how company- owned assets can be

used by the family as a shareholder (Family Business Governance Handbook, 2008).

The concept of alienating family members from one‘s business is what ―family out‖

concept is all about. In this concept, all family members are strictly off hand in one‘s

business, or they just entrust all their rights to only one person. This person may likely be the

oldest sibling in the family. The family out concept prefers to hire professionals to run their

business rather than being manned by their own relatives.

2.2 Family-owned business in Abu Dhabi

How these modern family-owned enterprises flourish in UAE, particularly in Abu Dhabi,

came about in 1960‘s when oil revenue made a significant impact on the lives of the locals.

(Mohammed bin Abduljalil Al Fahim, 2007) describe it this way: ―The significant leap in

entrepreneurial activities amongst the people of Abu Dhabi came in at the helm of Shiekh

Zayed power. However, it was a calculated risk on the part of the government as none of the





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locals are educated at that time. As a matter of strategy, the government compensated the

locals for their ―barasti‖ huts. This compensation gave the locals the seed capital to start their

business. However, there were inevitable snags in the housing compensation scheme. ―Chief

among which was the fact that local Abu Dhabians were simply not accustomed to having or

handling large amounts of money. Many wanted to take physical possession of the

compensation funds. Some spent their money wisely, building new homes and getting

involved in entrepreneurial ventures. Some marched directly to car showroom‖. ―The

government also issued decree that favor the locals in the establishment of their businesses.

One decree was that all foreign companies have to be either sponsored by, or in partnership

with, a local businessman. The ruling gave the local entrepreneurs the reason to initiate

contact with foreign companies thus expanding their horizons‖. ―In the late 1960s, the use of

expatriate expertise was necessary. However, it sometimes meant the local entrepreneurs took

longer time to acquire the much needed business skills than they would have had they been

more directly involved in the day-to-day management of their companies. By confining their

role to marketing and public relations activities, they missed the opportunity to learn the

broader business management and administration principles.‖

―Like in the other GCC (Golf Cooperation Countries), family-owned enterprises represent

more than 90% of the business community in the UAE. According to a recent study published

in the UAE, it states that nearly 70% of the over 20,000 family companies in the GCC are still

dominated by the old founding members, who ―control these firms with traditional methods

and attitude‖ (Farouk, H., 2012).

2.3 Social Capital

―Social capital refers to the collective value of all social networks (who people know) and

the inclination that arise from these networks to do things for each other. The central premise

of social capital is that social networks have value. Social capital can be found in friendship

networks, neighborhoods, churches, schools, bridge clubs, civic associations, and even bars

(www.hks.harvard.edu.). The value of group of persons to other groups or individuals is a

matter of what one can benefit from each other. It is very close to norms of reciprocity.

Numerous studies have suggested that one good business model is to invest in network of

people. This model has worked well in families with large size of numbers, thereby giving

them opportunities to propagate their business. Politicians also use the social capital structure

to their advantage. In business, the assumption lies that the larger the social network is, the

better it is for business. The more people know your business the better it is for you as the

owner.





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3. Methodology

This study utilized the qualitative -exploratory design, a methodological approach that is

primarily concerned with discovery and with generating or building theory. In this context,

exploration is thought of as a perspective, ‗a state of mind, a special personal orientation‘

(Stebbins, 2001) toward approaching and carrying out social inquiry

(http://srmo.sagepub.com/, Accessed 25 April 2015).

The qualitative inquiry focused on the various responses of the respondents during the

interview. This design is predetermined, and the emerging method used open-ended

questions. The data were treated through the use of appropriate text analysis.

The utilization of the exploratory method in this study has led to the discovery of

significant issues and concerns on entrepreneurship. With the appropriate way of describing,

recording, evaluating, analyzing, and interpreting the data gathered, the question on why

some entrepreneurs engage in ―Family In‖ and ―Family Out‖ concept of entrepreneurship in

their business and how ―Family in‖ and ―family Out‖ concept worked in the light of the use of

social capital in business were answered and understood.

The study used the interview method. The interview lasted for 1 to 2 hours for each

respondent. The interview phase started 31 March up to 23 April 2015. The interviewers used

the ―Interview question protocol and guide‖ that was prepared by the researchers. There were

at least 2 interviewers for each interviewee. Some of the respondents were interviewed again

either by phone or personally whenever further clarifications were needed.

3.1 Instrument

The data gathering employed a questionnaire composed of two parts. The first part

contains the demographic profile of the respondents while the second contains six open-ended

questions that were formulated by the researchers.

This study used interview with a chosen group of entrepreneurs in Abu Dhabi. The

answers to the six questions were validated by another interview using an open-ended series

of questions. According to Fraenkel & Wallen (2003, retrieved 2013), the researcher is the

key instrument. Data gathering primarily depended on the interviewers‘ skill in asking the

right questions. In this method, the interviewers seek to encourage free and open responses.

The interviewers captured the respondents‘ experiences articulated in their own words to

present the meaningfulness of the experience from the repondents‘ perspective.

3.2 Validity

Internal validity is the strength of qualitative research (Creswell 2003, retrieved 2013)

while Lincoln and Guba (1985) as cited by Golafshani (2003, retrieved 2013) consider

―trustworthiness‖ of qualitative research and use terms such as ―credibility,‖ ―transferability,‖

―dependability,‖ and ―confirmability‖ to refer to validity. Credibility deals with the accuracy

http://srmo.sagepub.com/





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of identifying and describing the subject of the study; transferability deals with the

applicability of the findings to another context; dependability is the researcher‘s account of

the changes inherent in any setting as well as changes to the research design as learning

unfolded; and confirmability deals on whether the findings could be confirmed by another

researcher, thus removing some of the researcher objectivity.

A table with the corresponding set of questions for comments or remarks of the

participants was prepared.

Lastly, to establish reliability of the qualitative data and to confirm the veracity of the

obtained significant information, the researchers conducted a follow-up validation interview

with the respondents.

3.3 Data Analysis

Descriptions of the prevailing feedbacks from the transcribed notes of the interviewers

were constructed. Each of these descriptions were integrated in the prevailing feedbacks of

the other respondents. The iterative process of reading and re-reading was done in order to

look for the themes or concepts to represent the qualitative data. Direct quotations from the

interview transcripts to elaborate and illustrate the themes or concepts cited were used. Then

records of interview were coded and properly encoded in the spreadsheet for researchers‘

interpretation. Percentages and Mode guided the researchers‘ interpretation. The Rank

Analysis was also used.

Criterion purposive sampling was used in choosing the 26 out of the initial 28

respondents of the study. This technique involves searching for cases or individuals who meet

a certain criterion, e.g., that they own a certain business or have had a particular experience in

either Family In or Family Out business. This sampling technique developed a framework of

the variables that might influence an individual's contribution and was based on the

researchers‘ practical knowledge of the research area, the available literature, and evidence

from the study itself.

The data gathering employed a questionnaire composed of two parts. The first part

contains the demographic profile of the participants while the second contains six open-ended

questions formulated by the researchers.

This study used interview with a chosen group of entrepreneurs in Abu Dhabi. The

answers to the six questions were validated by another interview using an open-ended series

of questions. According to Fraenkel & Wallen (2003, retrieved 2013), the researcher is the

key instrument. The researchers were guided by an interview protocol (see appendix), but

data gathering primarily depended on their skill in asking the right questions. In this method,

the interviewers encouraged free and open responses. The interviewers captured the

respondents‘ experiences articulated in the latters‘ own words to present the meaningfulness





8

of the experience from the respondents‘ perspective.

Data gathering was conducted in the following three phases:

3.3.1 Initial Phase

a. To determine the respondents of the study, the researchers utilized the 26 entrepreneurs

from among the initial 28 respondents chosen by criterion purposive sampling technique.

b. Since data gathering was conducted in participation with Business students enrolled in

Innovation and Enterprise course, two student interviewers were assigned to interview

one respondent.

c. The interview guide was prepared. Then, the interviewers were briefed on how to conduct

the interview to ensure gathering of appropriate information.

d. The researcher sought the permission of the respondents and assured them that the result

of the interview would be treated with confidentiality. There were no promises of

respondents‘ remuneration except that the result of the research will be communicated to

them.

e. An initial interview with two prospective respondents was conducted, and revision to

improve the questionnaire was made to cover crucial issues and useful information that

came out during the initial interview.

3.3.2 Immersion Phase

In consideration of the emic nature of the data treatment, where every experience has

structurally significant characteristics, the researcher extracted the data from the respondent‘s

point of view. As such, the interview adhered to the following process:

a. A desirable setting that provides comfortable atmosphere for conversation was identified.

b. A specific location where there were no distractions, and it was easy to hear the

respondents speak was chosen.

c. A non-threatening environment was identified.

d. A location that was easily accessible for the respondents was selected.

3.3.3 Final Phase

a. The researchers recorded the responses, undertook data ―sifting‖ to get into the process of

understanding the concepts, and coded the responses. Data sifting involved scrutinizing

and then organizing the data gathered from interviews to make a sense out of the

information gathered.

b. Issues were clarified.

c. Interview closure was made.

Finally, brief descriptions of the themes and meanings, called codes, were developed.

Similar codes were grouped together to form categories. Then, the researchers prepared the

report for analysis.

3.4 Research Questions





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The following research problems were advanced in this study:

a. What are the major factors that influence selected Emiratis in Abu Dhabi to become

entrepreneurs?

b. Why do some selected entrepreneurs in Abu Dhabi opt for Family Out and others for

Family In enterprise concept?

c. What factors affect Abu Dhabi entrepreneurs in their choice of Family Out or Family In

enterprise concept?

d. What are the Social Capital contributions of Family members in the enterprise of Family In

entrepreneurs?

e. How do Family Out entrepreneurs cope with the absence of family-based social capital

structure in their business?

f. How satisfied are the entrepreneurs who opt for Family Out and Family In concept in

meeting their business goals?

3.5 Data Interpretation and Findings

The tables and diagrams below aided the interpretation of the respondents‘ responses.

Table 1: summarizes the Entrepreneurs’ profile in this study





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Name

Age

Gender

Civil

Status

Education

Employed/

Unemployed

Years

in

Business

Family

In/Family

Out

Type of Business

Forms of Business

No. of

Staff

1 Ahmad Ali 30 Male Married College Employed 1 Family In Car Cleaning Partnership 40

2 Ahmed Abdullah 30 Male Married College Employed 7 Family

Out

Export/Import

goods

Sole Proprietorship 14

3 Abdullah Al Ahmed 50 Male Married College Employed 5 Family In Café Shop Partnership 6

4 Nora Al Hosni 57 Female Married College Employed 8 Family In Clothes Trading Sole Proprietorship 3

5 Khalid Abdulqadi 22 Male Single College Unemployed 1 Family

Out

Sub Contracting Partnership 11

6 Rashed Al Mazrouie 39 Male Married Post Graduate Employed 5 Family

Out

Electronic Shop Sole Proprietorship 3

7 Mohamed Suwaidi 27 Male Single Post Graduate Employed 6 Family

Out

Photo/Print Shop Partnership 12

8 Khalid Ahmed 45 Male Married College Employed 15 Family

Out

Power System Partnership 260

9 Hamad Ahmed 31 Male Married College Employed 6 Family In Construction Partnership 50

10 Mohammed Khalifa 35 Male Married Post Graduate Unemployed 7 Family

Out

Multiple Type Partnership 29

11 Mohammed Awadhi 41 Male Married College Employed 8 Family In Restaurant Partnership 10

12 Ali Mohammad 75 Male Married Elementary Unemployed 48 Family In Weaving Factory Sole Proprietorship 120

13 Mohammed Ali 35 Male Married College Employed 3 Family

Out

Car Wash Sole Proprietorship 10

14 Kuloud Humai 27 Female Married College Unemployed 2 Family In Burger Resto Sole Proprietorship 5

15 Khalifa Saleem 63 Male Married College Employed 15 Family

Out

Shade

Manufacturing


16 Waleed AL Ali 31 Male Married Post Graduate Employed 3 Family In Safi Sweets Partnership 20

17 Anita 29 Female Single College Employed 1 Family

Out

Sports Materials Sole Proprietorship 1

18 Hamood 28 Male Single Secondary Unemployed 6 Family

Out

Local Dress Shop Partnership 30

19 Shehab Sajwani 46 Male Married Post Graduate Unemployed 10 Family In Resto/Coffee Shop Sole Proprietorship 150

20 Abdulla Al Hai 32 Male Single College Employed 2 Family In Engineering

nsultancy


21 Abdulla

Abdelraheem

52 Male Married College Employed 20 Family In Property Rentals Partnership 25





11

22 Hisham Abdulla 40 Male Married College Employed 10 Family

Out

Retail Gifts Partnership 10

23 Ali Mohamed 34 Male Married College Employed 5 Family

Out

Gift Shop Partnership 12

24 Al Mansoori 33 Male Married Secondary Employed 11 Family

Out

Car Repair Shop Sole Proprietorship 4

25 Jamal Awadh 37 Male Married College Employed 7 Family

Out

Recruitment Sole Proprietorship 50

26 Faris Mohammed 35 Male Married College Employed 2 Family

Out

Resto/Coffee Shop Sole Proprietorship 10





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ChildhoodAmbition

42%

FamilyIn luence27%

Friend'sIn luence19%

Adventure/Accidental

Circumstances8%

JobFactors4%

ChildhoodAmbition FamilyIn luence

Friend'sIn luence Adventure/AccidentalCircumstances

JobFactors

Figure 1: Factors that Influence Entrepreneurship

Table 2: Top Reasons why Family Out and Family In was Chosen

Entrepreneurs who opt for Family Out

Entrepreneurs who opt for Family In

1. Strong Need for Independence

1. Family members just naturally helped each

other; They just volunteered to help the business.

2. Lacks of Business and Technical Skills from Family

members

2. Family members have business skills 3. Family members are busy. They have their own jobs

4. Trust/Conflict Issues

3. Family members were forced/required 5. Entrepreneurs want their wives to focus on family

matters only





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Figure 2: Reasons for Why Entrepreneurs Opt for Family Out

0

2

4

6

8

10

12

14

16

FamilyOut

15

9

7

4

2

Total

Reason1.StrongNeedforIndependence

Reason2.FamilyLacksBusinessSkills/FamilyisbusyReason3.Trust/Con lictIssues

Reason4.WantsWivestostayfocusonfamily

Note: Most respondents have multiple ―reasons‖ for why they choose Family Out.

Table 3: Factors Affecting Entrepreneurs Choice of Family Out-Family in Concept

Factors

Family Out

(15)

Family In

(11)

Total (26)

A. Age

40 and Below 14 (78%) 4 (22%) 18

41 and Above 1 (12%) 7 (88%) 8

B. Gender

Male 14 (61%) 9 (39%) 23

Female 1 (33%) 2 (67%) 3

C. Parents‘

Business Status

With Business 1 (11%) 8 (89%) 9

Without Business 14 (82%) 3 (18%) 17

D. Forms of

Business

Organization

Sole Proprietorship 9 (69%) 4 (31%) 13

Partnership 6 (46%) 7 (54%) 13





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Figure 3: Reasons as to why Entrepreneurs opt for Family In

11

8

43

Total

Reason1.NaturalFamily-BusinessEnvrionment

Reason2.FamilyMembershavebusinessskills

Reason3.FamilyMemberswereforced/required





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Table 4: Family members involved in the Social Capital Structure and their

Respective Social Capital Contribution

Table 5: Approaches Used by Entrepreneurs who lack Family-based Capital Structure (Family Out)

in their Enterprises

Name

(Entrepreneurs who

opted for Family Out)

Type of

Business

Approaches Used to Offset the

lack of Family-Based Capital Structure

1 Ahmad Ali 30 Male Car Cleaning Brothers, Sisters Manage the funds

Finding customers for the business

2 Abdullah Al

Ahmed

50 Male Café Shop Wife Prepare feasibility study

Suggest what is right or wrong with their

business

Provide technical know how

3 Nora Al

Hosni

57 Femal

e

Clothes

Trading

Children, Sisters Make good sales

Ability to find good customers

Help man the business

4 Hamad

Ahmed

31 Male Construction Brothers Ability to find good customers

Help source and manage the funds.

Good technical skills

Help man the business

5 Mohammed

Awadhi

41 Male Restaurant Brothers Make goods sales

Ability to find new customers

Good in networking and finding referrals

Good technical skills

Good in planning and administration

6 Ali

Mohammad

75 Male Weaving

Factory

Wife, Children,

Cousins Make goods sales

Strong abilities to find many customers

Good in finding referrals

Strong technical skills

Man the business

7 Kuloud

Humai

27 Femal

e

Burger Resto Brother, Sister,

Aunt Ability to find good customers

Help source and secure funds

Man the business

8 Waleed AL

Ali

31 Male Safi Sweets Brother Help in sales

Find customers and good in referrals

Manage the funds

Administration and technical skill

Man the business

9

Shehab

Sajwani

46 Male Resto/Coffee

Shop

Wife Business knowledge

Expertise in business

10

Abdulla Al

Hai

32 Male Engineering

Connsultancy

Brother Administration

Look for good customers

11

Abdulla

Abdelraheem

52 Male Property

Rentals

Brother Management of people

Cash keeping

Sourcing for materials





15

Approaches Narratives

1

Ahmed Abdullah

Export/I

mport

goods

1. Hire competent staff

2. Offer Quality products

3. Offer excellent customer

services

4. Provide Competitive Price

Always get the best workers in our

business

The business has its own loyal customer

since decades. These loyal customers,

inherited their loyalty for our business to

their children and the generations after.

Moreover, we trust that we provide the

best quality products and services and

our prices are competitive.

2

Khalid

Abdulqadir

Sub

Contracti

ng


2. Build Social Network

We have a good staff.

I rely too much on my business partner

who has a lot of connections. He has a

good connection with many people

Also we have professional staff to rely on.

We have special relations with other

people in the business also.

3

Rashed Al

Mazrouie

Electroni

c Shop


2. Offer Quality products

3. Offer excellent customer

services

I do follow everything by my own. All

customers are more than welcome to

contact me if they face any problem with

their items (if they didn’t have the proper

support from my worker in the shop).

In addition, before buying items from

suppliers, I always make sure that my

staff and I will be able to fix any problem

in all sold items to customer.

4

Mohamed

Suwaidi

Photo/Pri

nt Shop


2. Build Social Network I used social networks, word of mouth. I

work for free in some occasions and for

charity works

Train your staff well to keep your

customers.

5

Khalid Ahmed

Power

System



I do have good people. They can be

trusted. They are I think better than my

relatives in finding customers

Network for friends with reputable

customers.

6

Mohammed

Khalifa

Multiple

Type



I hired skilled people from different

nationalities.

It is sometimes difficult if your family

members are not supporting you but if

you are a good entrepreneur or

businessman, all you need to do is to

value your customers by adding after

sales services plus good relation

Your fellow businessman will also

provide you clients and you should do the

same.

1. Hire competent staff I advertise more using social media and





16

7 Mohammed Ali Car Wash 2. Keep on advertising also in newspaper and talk to a lot of

people

I look for best person to work for me

8

Khalifa Saleem

Shade

Manufact

uring

1. Hire competent staff I have a marketing that works on that.

They are expats. Hardworking and saving

money from career

9

Anita

Sports

Materials


got my clients through referrals and word

of mouth

10

Hamood

Local

Dress

Shop

1. Hire competent staff We have many good expats who work for

us and they are good. So there is no

problem if family members are not

helping me in this business

11

Hisham Abdulla

Retail

Gifts


I look for some friends and previous

partners

12

Ali Mohamed

Gift Shop


I have good people who are professionals

13

Al Mansoori

Car

Repair

Shop

1. Hire competent staff I have some expat workers. They are

enough to help me in my business

14

Jamal Awadh

Recruitm

ent

1. Build Social Network You need to focus on new customers in

the market to meet them first and

strengthen your relation with your own

customers

15 Faris Mohammed Resto/Cof

fee Shop


I use my reputation and relations so that I

was able to get good numbers of

customers

Table 6: Level of Satisfaction of meeting Business Goals for “Family Out” Entrepreneurs

Entrepreneurs who

opted for Family Out

Type of Business

Level of Satisfaction

of Meeting Business

Goals

Narratives

1

Ahmed Abdullah

Export/Import

goods

Very Satisfied

We have achieved our objectives and goals

since year one. This is one of the benefits of

taking after a successful existing business and

injecting new blood in the process.

2

Khalid

Abdulqadir

Sub Contracting

Very Satisfied

Yes, we have made so many contracts with

(name of company) and got good returns

specially that there is a big project at Abu

Dhabi Airport.

3

Rashed Al

Mazrouie

Electronic Shop Very Satisfied Yes. Absolutely.

4

Mohamed

Suwaidi

Photo/Print Shop

Very Satisfied

Yes. so far I am on track and my business is

getting bigger and better.

5

Khalid Ahmed

Power System

Very Satisfied

We are on the right direction.

Mohammed Yes. I am the only one controlling how





17

6 Khalifa Multiple Type Very Satisfied everything is going.

7 Mohammed Ali Car Wash Very Satisfied Yes, It is a good business.

8

Khalifa Saleem

Shade

Manufacturing

Very Satisfied

Yes, they have been achieved. Lack of family

members in my company does not affect my

business because I have my own goals.

9

Anita

Sports Materials

Very Satisfied

Yes, it is achieved and my goals do not require

the help of other people at this time.

10

Hamood

Local Dress Shop

Very Satisfied

Yes, together with my partner, we are happy

that we have more customers and our business

is growing.

11

Hisham Abdulla

Retail Gifts

Very Satisfied

Yes, the business is growing and I am looking

for other fields to go on.

12 Ali Mohamed Gift Shop Very Satisfied Yes, everything is fine.

13

Al Mansoori

Car Repair Shop

Very Satisfied

Yes, I know how to manage my employees. No

issues at all.

14

Jamal Awadh

Recruitment

Very Satisfied

Yes, I am achieving my goals by learning

continuously new skills and by the help of

more experience people in the market.

15 Faris Mohammed Resto/Coffee

Shop

Not yet satisfied

Not yet. I am looking to achieve my goals to

pen a new branch at Dubai, looking to change

the style of my café and restaurant and create

a better image.

Table 7: Level of Satisfaction of meeting Business Goals for “Family In” Entrepreneurs

Entrepreneurs who

opted for Family In

Type of Business

Level of

Satisfaction of

Meeting

Business Goals

Narratives

(About Family Contributions)

1

Ahmad Ali

Car Cleaning

Very Satisfied

Yes, they had helped me a lot to succeed my

business . . . We are satisfied with our business

goals.

2

Abdullah Al

Ahmed

Café Shop

Very Satisfied

Yes, I am happy for her contribution and our

business is fine.

3

Nora Al Hosni

Clothes Trading

Very Satisfied

Yes, they are very valuable. When they are not

around, especially during peak hours, it is a big

problem. They give a lot of new ideas and if they

don't support me, it is a big loss. Our aim is

achieved.

4

Hamad Ahmed

Construction

Very Satisfied

We are on the right track. Everything is achieved

so far.

5

Mohammed

Awadhi

Restaurant

Very Satisfied

Yes, it certainly has been beneficial, we would not

have been able to accomplish our desired goals

and reaching out to our target market.

6

Ali

Mohammad

Weaving Factory

Very Satisfied

All contributions, great and small are very

important to us. We can not stay this long if we

are a failure. For the past generations, we have

been doing well and we achieved almost all goals

we dreamed of in this business.

7

Kuloud Humai

Burger Resto

Not Satisfied Yet

Yes for sure. Their contribution helped me a lot to

avoid any mistake and secure my funds. Also they

played very imported role to create a good

network of customers my word of mouth among





18

their friends. So slowly but with their help with

coming years I can sure to a famous brand name

in local marker. I am still looking for that goal.

8

Waleed AL

Ali

Safi Sweets

Very Satisfied

Yes, Since my brother is my partner, we help each

other. I am satisfied of what we have done so far.

9

Shehab

Sajwani

Resto/Coffee

Shop

Very Satisfied

I doubt if our business goal is achieved with out

her. I am happy that we have done good so far.

10

Abdulla Al

Hai

Engineering

Consultancy

Very Satisfied

The help of my brothers has resulted in positive

look of the business.

11

Abdulla

Abdelraheem

Property Rentals

Very Satisfied

Very much valuable, and it helped achieved our

business goals.

4. Results and Discussion

There were 26 Emirati entrepreneurs in this study, 3 females and 23 males. Since this study

used purposeful sampling, the researchers determined that the list of entrepreneurs provided by

Innovation and Enterprise class of 3 sections of Business students at Abu Dhabi Men‘s College

for Semester 2, 2014-2015, is composed of valuable respondents ideal for this research. These

entrepreneurs were students‘ resource persons for their respective projects.

4.1 Basic Findings

1. Civil Status. 21 (81%) of the respondents are married and 5 (19%) are single.

2. Age. The youngest respondent is 22 years old and the oldest is 75 years old. 18 (69%) of the

respondents are 40 years old and below and 8 (31%) are 41 years old and above.

3. Employment Status. 20 (77%) of the respondents are employed and 6 (23%) are not

employed elsewhere. All female respondents are employed.

4. Education. 18 (69%) have finished College education, 6 (23%) have Post Graduate Studies,

and 2 (8%) have finished Elementary or Secondary courses only.

5. Forms of Business Organization. 13 (50%) of the respondents are in Sole proprietorship and

another 13 (50%) are in Partnership. All female respondents are into Sole proprietorship.

6. Number of Years as Entrepreneurs. The range of years is from 1 year to 48 years. 12 (46%)

of the respondents are those with 5-10 years of experience. 5 (19%) have over 11 years of

experience and 9 (35%) have below 5 years of experience.

7. Types of Business. The types of business the respondents engaged into are varied: 20

different types. There are 4 entrepreneurs engaged in restaurant/coffees shop business; 3 in

car care/maintenance service-related, and 2 Gift shops.





19

8. Number of staff. The respondents‘ number of staff ranges from 1 person to 260 persons per

enterprise. 10 (38%) of the respondents have 10 or less number of staff; 7 (27%) have 11-15

staff; 5 (19%) have 26-50 staff; 1 (4%) has 51-100 staff, and; 3 (12%) have over 100 staff.

The entrepreneurs in this study have identified 5 major factors that influenced them to

become entrepreneurs. Some entrepreneurs have multiple answers to this question. These are the

main factors:

1. Childhood Dream/Ambition

11 out of 26 (42%) entrepreneurs considered ―Childhood dream/ambition‖ as the top factor.

Kuloud Humaid, a restaurant entrepreneur explained it this way: “It has been my wish since I was

a child. I like to create my own business and spend time to earn money and become a brand

manager in a local market.” Jamal Awad, Recuitment company entrepreneur, further added,

―Since I was a child, I really want to have my own business.”

2. Family Influence

7 out of 26 (27%) entrepreneurs considered “Family Influence” as another factor. Ahmed

Abdulah of Al Salami & Sons Trading sum it up perfectly in this way: ―My Family Influenced

me. My grandfather, Ahmed Al Salami the 1st, established this company 67 years ago (in 1948).

As children, we used to visit the establishment and look at the new products introduced and my

grandfather negotiations. It is when I developed an interest of making this business prosper. With

the change in mentalities and style of people, the market demands new approaches and products.

It is why I decided, as a third generation, to take after my grandfather and keep the business

going with my own aspects as a young Emirati, with keeping our tradition and heritage alive.

Undoubtedly, ―family is a social influence in a business start-up, (Burns, Entrepreneurship and

Small Business, 3rd

Edition).

3. Friend’s Influence

5 out of 26 (19%) entrepreneurs considered ―Friends’ Influence‖ as another factor. Khalid

Abduqadeer, a student entrepreneur mentioned, “My father was approached by his friend to have

a business partnership.” Likewise, Khalid Ahmed, an entrepreneur that deals with power supply

aptly said, ―My friends just influenced me.‖

4. Adventure and Accidental Circumstances

2 of 26 (8%) respondents attributed ―Adventure and Accidental Circumstances” as another

factor. Rashed Al Mazrouie, an entrepreneur of Double Star Electronic Shop, shared his

experienced as follows: “It was an accident. I always like to buy unique things such as

headphones, covers, cloths, devises, electronics. etc. These unique things mostly can be found

outside UAE such as USA, UK, Australia.etc. All my friends were asking where I bought these





20

things and asked me to buy them the same items as these. By the time, I’ve got the idea to open

my own business to sell unique electronic items which is demanded by my friends which mean

that it will be demanded by others as well. So I start ordering bigger quantities and sold it out to

my friends and others through social media. Eventually I decide to open my electronic shop to be

able to import big quantities under my shop name.”

5. Jobs Factor

Only 1 of 26 (4%) respondents considered this as a factor. Abdulla Al Hai, an entrepreneur of

Engineering consultancy share his experienced: “While at work, I like to deal with multi national

people hence the knowledge they have are very interesting to me. This the reason why I started

my own business.

There are 26 entrepreneurs in this study. 15 of them opted for Family Out while 11 opted for

Family In. The entrepreneurs who opted for Family Out, identified 5 reasons while those who

opted for Family In identified 3 reasons. Some entrepreneurs have multiple responses to this

question.

A. Reasons for Entrepreneurs who Opted for Family Out

1. Strong Need for Independence.

9 out of 15 (60%) entrepreneurs considered this as the main factor as to why they prefer to

venture alone, that is, without family intervention in their business. Rashed, an entrepreneur that

deals with electronics described it this way: “I don’t want them to participate or help me in my

business. I look after my business by my own. I do trust my family but I feel comfortable more

when I do everything by my own.” A ―strong need for independence is a personal characteristic

traits. It is one of the common start up influences‖ (Burns, Entrepreneurship and Small Business,

3rd

Edition). Furthermore, Khalid Abdulqadeer, an entrepreneur in Sub-Contacting business has

this simple words, ―I prefer to do it alone, a sort of secret one”. Khalid believes that it will be

good for him if he does the management alone. He points out the importance of doing it alone so

that he can trust his self well in the future, but he readily answered that he will share his business

to his family if his father will ask him to do.

2. Their family members lack business and technical skills.

7 out of 15 (47%) entrepreneurs considered this as another factor as

to why they opt for Family out. They opined that it is not good to let

their family members be a part of their business if they have nothing to contribute at all.

Mohammed Khalifa said, ―I don't want them because they don’t

have the skills required for the business. They are not needed. They





21

are just excess personnel to his business‖. Mohammed Ali, an entrepreneur with car wash

business said, ―For some members of the family, they don't have knowledge or skills about my

business.‖ These 7 entrepreneurs are just short of saying that family members who lack business

skills do not contribute to the social capital of the business at all.

3. Family members are busy. They have their own work or business.

7 Out of 15 (47%) entrepreneurs consider this as a reason why they opt for family out. When

everyone in the family is pre-occupied with their respective work, chances are that no one will

lend a hand to family member‘s business. So they just opt for family out.

4. Trust or Conflict Issues

4 out of 15 (27%) entrepreneurs consider this reason why they opt for Family Out. Mohamed

Khalifa articulated his fear, ―I believed that it is difficult to manage family members. This is what

I observed in some family specially when business is going down.” Mohamed‘s reasoning is

actually anchored on reality. Family in-fighting often occur when the business is in heavy

problem. Like Mohammed, Khalid is also on the same reasoning when he said, ― I prefer to be

alone . . . I can avoid conflict in the family.” ―Conflicts among the siblings who run the business

or misunderstandings between different family branches may spill over to the company‘s domain

and create problems for other share-holders. Quite often, especially during the early, start-up

stages of the family business, the company and family relationships are not clearly distinguished.

This is particularly true with respect to financial relations and accounts—the company‘s and

family‘s assets are not legally separated. This causes problems in distinguishing company-owned

assets, and how company- owned assets can be used by the family as a shareholder (Family

Business Governance Handbook, 2008).

5. They want their wives to focus on family matters only.

2 married respondents who opted for Family Out pointed this as their reason. Mohammed Ali,

directly uttered this statement: ―I don't want my wife to participate in my business because I want

her to focus on family matters only.” This reason is self explanatory since a husband-entrepreneur

is often out of house doing business chores. It is therefore a must that a wife should look up

family matters at home.

B. Reasons for Entrepreneurs who Opted for Family In

1. Family members just naturally helped each other. They volunteered to help in the business.

8 out of 11 (73%) entrepreneurs who opted for Family In pointed this out. Ali Mohammed, 75,

the oldest entrepreneurs in this study has this novel explanation, “I did not require or forced

them. They just volunteered. The business we are in is a traditional family business which we like

to do and we do well. So, it was natural to cooperate with the relatives.” Ali, who just finish





22

Elementary grade, and is not properly schooled compared to other entrepreneurs, is probably the

one with the highest wisdom of all. He has 48 years of experience in business after all. He has

valued the importance of social capital in their business. He has been serving his parent‘s

business way back then and he has this to say, “No one required or forced us to participate in

family business. Life used to be very difficult those days unless we cooperate for the whole family

wellbeing things would not work. That was my conviction.”

2. Family members have the business skills

4 out of 11 (36%) entrepreneurs consider this as another reason why they opt for Family In. In the

minds of these entrepreneurs, social capital is relevant when a family member has business skill

only. Otherwise, a member without a business skill will turn out to be just another excess

baggage, a liability in business. Once a husband has recognized his wife‘s business skills, he will

surely capitalize it for their business sake. This is the case with Abdullah Al Ahmed, an

entrepreneur with café shop business. He praised her wife‘s contribution when he said: “she

helped me a lot of things. For example, she did a feasibility about profits and told me of what is

wrong and right in our business.” This is also true with Shebab, an entrepreneur with a

restaurant. ―My wife is helping me in the business. For business expansion, she is assisting me

well because she has excellent knowledge and expertise”

3. Family members are forced/required to help the business

3 out of 11 (27%) entrepreneurs did this to their family members

and sighted this reason for the choice of Family In. Hamad Ahmed, an entrepreneur with

construction business has this to say, ―I don’t have more time to concentrate on this business

alone. This is a family business after all, so I asked them to spend their time in our business.‖ Al

Faheem, who inherited his business from his parents, required his brothers to help him. He said,

―It is a family business, so each of us has to help each other. We share the profit but we also

share expenses. These properties are in Abu Dhabi and Al Ain. We have to work together.”

Below are the factors affecting Abu Dhabi entrepreneurs in their choice of Family Out or Family

In enterprise concept.

a. Entrepreneur‘s Age.

78% of entrepreneurs aged 40 years old and below opted for Family Out while 88% of the

entrepreneurs aged 41 years old and above opted for Family In.

Young entrepreneurs tend to opt for Family Out while old entrepreneurs tend to keep the old

Family In concept in their enterprises.

b. Entrepreneur‘s Gender





23

61% of male entrepreneurs opted for Family out while 67% of the female entrepreneurs opted for

Family In. Male entrepreneurs tend to opt for Family out while female entrepreneurs tend to keep

the old Family In concept in their enterprises.

c. Parents‘ Business status

82% of the entrepreneurs whose parents do not own a business opted for Family Out while 89%

of entrepreneurs with parents‘ business opted for Family In. Entrepreneurs whose parents are not

engaged in business tend to opt for Family out while those who have parents‘ business tend to

keep the Family In concept.

d. Forms of Business Organization

69% of entrepreneurs whose form of business organizations are Sole Proprietorship opted for

Family Out while 54% of Partnership form of organization opted for Family In.

Entrepreneurs in a Sole Proprietorship tend to opt for Family Out while those in Partnership tend

to keep the Family in concept n their enterprises.

4. What are the Social Capital contributions of Family members in the enterprise of Family In

entrepreneurs?

For entrepreneurs who opt for Family In concept

a. Family Members Involved in the social capital structure

1. Brothers/Sisters.

8 out of 15 (54%) entrepreneurs have their own brothers/sisters involved in their respective

enterprises.

2. Spouse/Wife

3 out of 15 (20%) entrepreneurs have their own wife involved in their respective enterprises.

3. Children

2 out of 15 (13%) entrepreneurs have their own children involved in their respective enterprises.

4. Other family members

2 out of 15 (13%) entrepreneurs have their Cousins and Aunt involved in their respective

enterprises.

b. Family members‘ social capital contributions.

Entrepreneurs who opted for Family In concept in their enterprises have identified 4 social capital

contributions of their family members. Most of these entrepreneurs have multiple

answers/responses to this question.

1. Generate Sales/Find Customers/Networking

14 out of 15 (93%) entrepreneurs who opted for Family In considered





24

sales generation to their enterprises as the top contribution. This has truly supported various

Entrepreneurship literatures that suggest Sales/Income generation as the core of social capital

contribution.

2. Planning and Administration.

13 out of 15 (87%) entrepreneurs who opted for Family In considered

planning and administration as another novel social capital contribution in the enterprises.

3. Technical Skills

6 out of 15 (40%) of entrepreneurs who opted for Family In considered

Technical skills of family members as their social capital contribution in

the enterprises.

4. Manage/Secure Funds

5 out of 15 (33%) of entrepreneurs who opted for Family In considered

Fund management of family members as their social capital contribution in the enterprises.

Family Out entrepreneurs coping with the absence of family-based social capital structure in their

business

There are 15 entrepreneurs who opted for Family Out concept in their respective

enterprise. These entrepreneurs have identified 6 approaches to offset the absence of family-based

social capital structure in their enterprises. Some of them have multiple responses to this question.

1. Hire qualified and competent staff

12 out of 15 (80%) entrepreneurs who opted for Family out consider this as the top approach

to cope the absence of family-based social capital in their enterprise. Ahmed Abdulah

recommends, ―Always get the best workers in your business.‖ For Mohammed Al Swaidi,

‖Train your staff well to keep your customers‖. Hamood echoed the importance of expat

workers. ―We have many good expats who work for us and they are good. So there is no problem

if family members are not helping me in this business.‖ Khalifa Salim even boast, ―I have a

marketing (team) that works on that.”

These entrepreneurs believe that competent staff are all you need to get the right customers

for your business. With the right person for the job, they are not worried even if their business

does not have family-based capital structure.

2. Build Social Network of people

8 out of 15 (60%) entrepreneurs who opted for Family out consider building social network

of people as a good approach in the absence of family-based social capital structure in their

enterprise. The premise of this approach is, to build one if you don‘t have one. Since capital

structure is not exclusive for family members alone, the alternative is to build one based on their





25

present customers and those entrepreneurs in their circle. Khalid Abdulqadeer said. ―We have

special relations with other people in the business also.‖ Faris on the other hand use his

reputation and relations so that he can get good numbers of customers. Also, Mohammed Suwaidi

―used social networks, word of mouth‖. He further added, ―I work for free in some occasions and

for charity works.‖ Jamal Awadh explained it further, ― You need to focus on new customers in

the market to meet them first and strengthen your relation with your own customers.” Finally,

Mohammed Khalifa has this compelling statement on how to survive in business even if one does

not have the family-based social capital structure: ―It is sometimes difficult if your family

members are not supporting you but if you are a good entrepreneur or businessman, all you need

to do is to value your customers by adding after sales services plus good relation. Your fellow

businessman will also provide you clients and you should do the same.”

While it is true that a good social capital is family based; however, one can still create a

capital structure even in the absence of family support. This is evident by the initiatives used by 9

entrepreneurs in this study. They prove a point that social capital can be redeemed, even in the

absence of family support by building social network of people who are primarily their own

customers and their fellow entrepreneurs.

3. Other Approaches

The following approaches were also considered by 1 or 2 entrepreneurs in this study:

Offer excellent customer services

Keep on advertising

Offer quality products to customers.

Provide competitive prices

The point they wish to drive is that even if one business does not have a family-based

capital structure, it can still overcome the odds by using the above approaches. By using these

approaches, finding right customers and clients will not be a hindrance in their pursuit of a good

business.

5. Conclusions and Recommendations

Conclusion

Based from the major findings of the study, the following conclusions are derived:

1. There is a growing trend among young Emirati entrepreneurs to opt for Family Out concept in

enterprise creation. The ―Strong Need for Independence‖ is the primary reason for the choice of

Family Out. 8 in 10 (78%) entrepreneurs, aged 40 years old and below, opted for Family Out

while 9 in 10 (88%) entrepreneurs aged 41 years old and above opted for Family In.





26

2. The family influence is a major factor in the choice of entrepreneurs‘ Family In concept. 90% of

those who opted for Family In have family-owned businesses prior to their enterprise.

3. The family members of entrepreneurs who opted for Family In concept have significantly

contributed ―add value‖ to their respective enterprises. Family members offer wide array of

contributions – from Customers‘ Networking to Business administration.

4. Entrepreneurs who opted for Family Out employ competent people in their enterprises to offset

the absence of family support.

5. Entrepreneurs from both the Family In and Family Out business enterprises have experienced

similar level of satisfaction in the achievement of their business goals.

6. The ―Strong Need for Independence‖ is the primary reason for the choice of Family Out concept

of enterprise.

Recommendations

The Family Out concept in business is a progressive idea among entrepreneurs since it

gives them the much needed ―independence‖ in running the affair of their enterprises. However,

the lack of family participation will isolate their family members from the business.

Consequently, family members will be unable to learn the trade of the business. Further more, it

will adversely affect the future of the enterprise once the entrepreneurs retire as nobody from the

family has the business skill to continue its operation.

Thus, the following are recommended:

1. Entrepreneurs who opted for Family Out concept should consider ―family involvement‖ in

their enterprise in the near future. Not only family members will add value to their enterprises but

will surely determine the future outcomes of their enterprises.

2. For entrepreneurs in the Family Out businesses whose family members are still too young to be

involved, they are encouraged to participate in the network of various business organizations so

as to offset the lack of social capital in their enterprises.

3. The Family In concept is an excellent business orientation as it provides family members the

opportunity to learn various business skills. The major drawback of this concept however, is

when the conflict among family members escalates to a ―blood bath‖ among them. In many cases,

the family breaks up to the point that legal consequences tend to overpower them.

Thus, this study recommends that Family In Enterprises must adhere to a clear Mission-

Vision Statement, Policies, and Programs, Tasks, and Activities in their enterprises that must be

understood by all participating members of the family. Likewise, the family members‘ duties and

responsibilities must be understood and respected by all. The ―figure head‖ of the family

enterprise must take a moral lead on this to avoid family conflict.





27

4. On business areas in which competencies required are not available among family members.

The job position in this aspect should be given to outsiders until family members have mastered

these competencies. Hiring a business consultant is also recommended.

5. Hierarchical positions among family members must be made clear and over lapping with one

another‘s role must be avoided. Since conflict among family members in the enterprise often

happen when there is no clear delineation of different positions, constant review of the scope of

these positions must be done periodically to ensure organizational effectiveness.

References

Al Fahim, Mohammed, ―From Rags to Riches – A Story of Abu Dhabi‖, 2007 ISBN 978-1-4392-

1863-1

Bianco, David, 1998, The Pros and Cons of Family Business.

Burns, Paul, 2010, Entrepreneurship and Small Business, 3rd

Edition.

Drake, Andrew, 2009, Understanding Family Business.

Family Business Governance Handbook, 2008.

Farouk, Hisham, 2012, Rules of Engagement.

Feffer,David, 2007, Family Business Challenges

Flanagan, Ben, 2014, ―Keeping Business in UAE‖, The National,

Kleiman, Robert and Peacock Eileen, ―Family Businesses as an Economic Phenomenon.

McKeever, Ed and Jack, Sarah, 2005,―The Role of Family in Entrepreneurship: A Qualitative

Study,‖.

MENA Family Businesses‖ The Real Power Brokers? (2011)

Riel, Bob ―Cultural Context-United Arab Emirates‖, Eaton Consulting Group Newsletter.

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Documents

Family In Family Out: Social Capital Entrepreneurs Perspectiveglobalbizresearch.org/Malaysia_Conference/pdf/KL569.pdf · 2015. 8. 6. · (Mohammed bin Abduljalil Al Fahim, 2007) describe