Family Business

Agreement to continue the business occurs when family members are committed to the perpetuation of the business and are willing to work together to ensure its future (Handler 1989). Research has shown that the agreement to continue the business is positively related to perceived family harmony (Babicky 1987) and payoffs from the business (e.g. financial gains, increased market share and growth) (Alexrod 1984). Although the agreement to continue the business is not correlated with any negative aspects, the decision to continue the family business is not a simple one. Family members must unanimously agree regarding the future of the business, what constitutes continuity, and what opportunities for the future are possible. Thus, the decision to continue the business must be one of consensus with clear gains for those involved in the agreement. Additionally, each member of the family business must be willing to put forth what is necessary to perpetuate the enterprise.