By Peter Goldie
‘Family businesses’ is a ubiquitous term which covers a huge range of socio-economic groups from the Packers and Murdochs to the owners of the local milk bar. Together they form a large part of society’s economic machinery.
The sector was the subject of a significant report in 1997 by the National Mutual Family Business Research
Uni basted at Monash University’s Caulfield campus in
conjunction with Family Business Australia.
The research was undertaken by a study team headed by the unit’s foundation director, Dr Kosmas Smyrnios, and Professor Claudio Romano from the Department of Accounting and Finance, a joint foundation director of the unit.
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| Professor Claudio Romano and Dr Kosmas Smyrnios. |
It attracted unprecedented interest in profiling the significance of the economic role of family businesses, after finding that they accounted for more than 80 per cent of firms operating and employ half the workforce in Australia.
The project has now been followed up by a lifestyle audit which looks inside family businesses, analysing the pressures and rewards facing those who run the enterprises, as well as the effects on health, family and relationships.
The picture which emerges is of a whole class of individuals driven to the point of obsession, consciously excluding leisure, religion and gambling from their routines and unhappy about, but accepting, intrusions into family life and responsibilities.
The negative aspects are in many cases more than balanced by extraordinarily high rates of satisfaction among family business managers with their achievements.
Dr Smyrnios describes the group: "Here we’ve got owners who view their businesses as central to their lives. It actually dominates their lives – not only their working life, but their family and social lives as well.
"They are extremely committed individuals who are working exceptionally long hours – anything up to 105 hours per week, although 55 to 60 is more common. And the fact that 80 per cent do not gamble at all is really interesting given the percentages of people in the wider community who do gamble. There is almost an inverse relationship."
He says one reason for this may be that in a climate where a third of family businesses do not survive to a second generation, the very real risks to personal and family security more than accomodate any drive to risk-taking.
Nearly a quarter of respondents rate their health as poor, and 44 per cent say their business has a negative impact on their health. They desperately look forward to a holiday from the business but often miss out or believe they do not get enough holidays. A hard core of nearly 10 per cent admit never taking holidays, while half report taking a break once a year or less. Even during sport and leisure time they are often preoccupied with business matters.
| Monash University's Family Business Unit offers an executive certificate in family business aimed at owners of small to medium sized businesses and professional service providers. For information about the 2000 course, contact Professor Claudio Romano on (03) 9903 2171. |