Analysis of the Competitiveness of Family and Non-family Businesses

Family companies have a special place in the economy of each country, increasing the number of jobs and GDP. However, at present time there are a small number of works devoted to the study of this type of business, its advantages and differences from non-family companies. Most studies contain conflicting results or superficial reasoning. Using the BEEPS database – a survey of firms containing 23,132 completed interviews in 41 countries, an analysis of the impact of the type of business on investment activity (one of the key performance indicators of the company) was conducted. The sample was divided into groups according to the level of family of enterprises: family-owned firms with a high level of ownership, family-owned firms with a low level of ownership and non-family firms. The results of the study showed that the family type of business has a positive effect on investment activity. However, when companies were divided into family levels, it turned out that, companies with a high degree of family ownership invest less than with a low one.