The Impact of Small- and Medium-Sized Family Firms on Economic Growth

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Esra Memili, Associate Professor of Entrepreneurship (Creator)
The University of North Carolina at Greensboro (UNCG )
Web Site:

Abstract: Drawing on family business studies and the knowledge-based view of economic growth, we develop and test a model of how the prevalence of small- and medium-size enterprises (SMEs) under family control affects economic growth. Specifically, we propose there is an inverted U-shaped relationship between family SMEs’ proportional representation and economic growth owing to their relative strengths and limitations vis-a`-vis non-family SMEs. Using state-level data from the US between 2004 and 2010, we find support for our hypothesis and the underlying contention that economic growth is maximized when an economy includes a balanced mix of family and non-family SMEs.

Additional Information

Small Business Economics
Language: English
Date: 2015
Family business, Economic growth, Family firms, SMEs, Knowledge asymmetry

Email this document to