Family Owned Small Businesses

 
 
 
 
Approximately twothirds of all business enterprises in the United States are classified as small businesses. The great majority of these firms, regardless of the form of business organization (sole proprietorship, partnership, or corporation) are familyowned. These firms account for approximately 40 percent of the employment of human resources in the American economy and generate approximately onethird of the nation's gross national product (GNP).

During a period of unprecedented change in the American economy (the pursuit of North American free trade, expanding the markets for American products in Asia, a changing American workforce, and so forth), American business enterprises must also change if they are to remain viable. Those business organizations that are most resistant to change are the small, familyowned firms. Considering the significance of such firms to the American economy, ways must be found to cause small, familyowned businesses to become more open to the need for and the implementation of change.

This study examined resistance to change in small, familyowned business firms in the United States. The research questions investigated through the conduct of this study were as follows:

1. What are the primary sources of or factors involved in the resistance to change in small, familyowned business firms? 2. What strategies may be employed to successfully overcome resistance to change in small, familyowned bus


     
 
 
 
    

 

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concentration ratios varied by industry. Thus, concentration in highly oligopilistic industries such as automobile manufacture changed little, while the trends toward concentration in industries such as construction tended to either slow down or reverse. The thirtyfive year time period from 1946 through 1980 was one of unprecedented organizational growth in the private sector of the American economy. In the aggregate, the American economy grew from a postwar GNP of $476.9 billion in 1946 to $1,471.8 billion in 1980, as measured in 1972 constant dollars In most American industries, however, this more than threefold growth over a thirtyfive year time period did not result in a proliferation of individual firms. Rather, this growth was accompanied by increased economic concentration in most American industries. In the early1970s, President Nixon declared that large business and industrial organizations were not evil simply because they were big and dominant, and the policies implemented by his administration promoted additional economic concentration in American industries. In the late1970s, however, the trend toward increased concentration in the American economy appeared to reverse. What actually occurred was a tr

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