Abstract:
The objective of this report was to establish the strategies and factors responsible for successful family businesses and in particular the reasons for success for Indian family-owned businesses in Kenya, determining if these are indicators to increased profitability and growth. This understanding could lead to informed decision making by the management in family businesses and an increased survival rate for Indian family businesses in Kenya. The researcher’s objectives were to confirm the 8 different propositions that were identified. On examination of the literature on family-owned businesses, several factors were identified as common to most family businesses and critical to success. Of these the most frequent 8 factors were narrowed down for the research . The questionnaire was then designed based on theses 8 factors and propositions. The Kenya-based research, used the questionnaires to target second or third generation members of family businesses for its data collection. The researcher collected 123 usable questionnaires from Indian family businesses entrepreneurs in Kenya, which was then used determine their responses to the identified propositions and if those factors identified made Indian family businesses successful in Kenya. Various quantitative statistical techniques were used to collect and analyse the data. Regression analysis was used to investigate the data collected from the sample. The research found that despite all the literature written about the factors that affect family businesses, not all these factors apply to Indian family businesses in Kenya. This paper identifies which factors do not relate to these businesses and which ones play an important role for family business success.
