NE167: Family Business Viability in Economically Vulnerable Communities

(Multistate Research Project)

Status: Inactive/Terminating

Project Menu

SAES-422 Reports

Annual/Termination Reports:

[04/01/2001] [12/20/2001] [10/16/2002] [12/16/2003] [12/06/2004] [05/12/2005] [05/26/2006]

Date of Annual Report: 04/01/2001

Report Information

Annual Meeting Dates: 01/04/2001 - 01/06/2001
Period the Report Covers: 01/01/2000 - 12/01/2000

Participants

Sharon M. Danes, sdanes@che1.che.umn.edu, Family Social Science Dept., University of Minnesota, St. Paul, MN;
Sara Douglas, sdougls@uiuc.edu, University of Illinois, Urbana, IL;
Margaret Fitzgerald, margaret_fitzgerald@ndsu.nodak.edu, Dept. of Child Development and Family Science, North Dakota State University, Fargo, ND;
Grace Fong, gfong@hawaii.edu, Dept. of Family and Consumer Sciences, University of Hawaii at Manoa, Honolulu, HI;
Karen Goebel, karen.goebel@ces.uwex.edu, Dept. of Consumer Science, University of Wisconsin, Madison, WI;
Ramona K.Z. Heck, rkh2@cornell.edu, Dept. of Policy Analysis and Management, Cornell University, Ithaca, NY;
Cynthia R. Jasper, jasper@consci.wisc.edu, Dept. of Consumer Science, University of Wisconsin-Madison, WI;
Yoon G. Lee, Yoonlee@cc.usu.edu, Dept. of Human Environments, Utah State University, Logan, UT;
Diane M. Masuo, masuo@hawaii.edu, Dept. of Family and Consumer Sciences, University of Hawaii at Manoa, Honolulu, HI;
Glenn Muske, muske@okstate.edu, Oklahoma State University, Stillwater, OK;
S. Kay Obendorf, sko3@cornell.edu, Administrative Advisor, Assoc. Dean of Research, Cornell University, Ithaca, NY;
Alma J. Owen, almaowen@purdue.edu, Dept. of Consumer Sciences and Retailing, Purdue University, West Lafayette, IN;
Jennifer Paul, jjpaul@iastate.edu, Dept. of Human Development and Family Studies, Research Associate, Iowa State University, Ames, IA;
Kathryn Stafford, stafford.2@osu.edu, Textiles and Consumer Sciences, College of Human Ecology, Ohio State University, Columbus, OH;
Margaret (Peggy) Whan, whan@mail.uark.edu, Human Environmental Sciences, University of Arkansas, Fayetteville, AR;
Mary Winter, mwinter@aistate.edu, Associate Dean, CFCS, Iowa State University, Ames, IA;

By telephone, Sally Maggard, smaggard@reeusda.gov, National Program Leader, ECS, USDA, CSREES, Washington DC

Brief Summary of Minutes

Minutes of the mid-year meeting (May 11-13, 2000) are available at http://www.human.cornell.edu/ne167/minutes/Min0500.html.

Accomplishments

The project began in October, 1999. Most of this first year has been spent in questionnaire development, data collection and development of the Economic Vulnerability Index. In the fall of 2000, 708 respondents in the 1997 National Family Business Survey were re-interviewed. Eighty-six previous interviews of home managers were dropped from the current study, one previous case was deemed ineligible for a total of 707 cases (households). The data analysis will provide the first longitudinal study of family-owned business in the United States studied as households and resulting in the assessments of their contributions to rural viability. The significance of family owned businesses in rural areas will be shown. This information will be invaluable in determining state and federal labor policies, programs, and laws. Products from these studies will include teaching and extension materials for working with families at the margin. Basically, this project will result in more effective public institutional support for family businesses, more informed policy decisions and laws regulating home-based work, and enhanced economic vitality of rural families and communities

Publications

Edited thematic issue: Danes, Sharon M. and Paul C. Rosenblatt, Journal of Family and Economic Issues with thematic issue on family businesses, University of Minnesota, Volume 21 (3). Published articles: Danes, S.M., R. Leichtentritt, and M. Metz. (2000). Effects of conflict severity on quality of life of men and women in family businesses. Journal of Family and Economic Issues, 21 (3), 259-286. Duncan, K., V.S. Zuiker, and R.K.Z. Heck. (2000) The importance of household management for the business-owning family. Journal of Family and Economic Issues, 21 (3), 287-312. Fitzgerald, M. A. and M. Winter. (In Press). The intrusiveness of home-based work on family life. Journal of Family and Economic Issues. Fitzgerald, M. A., N.J. Miller, M. Winter, and J. Paul. (In Press). Adjustment strategies in the family business: Implications for gender and management role. Journal of Family and Economic Issues. Masuo, D, G. Fong, J. Yanagida, and C. Cabal. (In Press). Factors associated with business and family success: A comparison of single manager and dual manager family business households. Journal of Family and Economic Issues. Miller, N. J., M. Winter, M.A. Fitzgerald, and J. Paul. (2000). Family micro-enterprises: Strategies for coping with overlapping family and business demands. Journal of Developmental Entrepreneurship, 5(2), 87-113. Miller, N. J., M. Winter, M.A. Fitzgerald, and J. Paul. (2000). Family micro-enterprises: Strategies for coping with overlapping family and business demands. Journal of Developmental Entrepreneurship, 5(2), 87-113. Stewart, C.C. and S.M. Danes. (In Press). The relationship between inclusion and control in resort family businesses: A development approach to conflict. Journal of Family and Economic Issues, 22 (2). Manuscripts under review: Paul, J., M. Winter, N.J. Miller, and M.A. Fitzgerald. The impact of timing and sequencing on the use of adjustment strategies in families affiliated with family-owned businesses. Journal of Marriage and the Family. Family Business Research Group Reports: Paul, J., M. Winter, N. Miller, and M.A. Fitzgerald. Balancing work and family in the family business. Book chapters: Heck, R.K.Z., C.R. Jasper, K. Stafford, M. Winter, and A.J. Owen. (2000). Using a household sampling frame to study family businesses. The 1997 National Family Business Survey. In J.A. Katz (Ed.), Databases for the Study of Entrepreneurship. Advances in entrepreneurship, firm emergence and growth (Vol.4 ). Elsevier/JAI Press, Stanford, CT. Jasper, C. K. Goebel, K. Stafford, and R.K.Z. Heck. (2000). A gender comparison of business management practices of home-based business owners. In C.B. Hennon, S. Loker and R. Walker (eds.), Gender and home-based employment, Chapter 8. Auburn House, Westport, CT. Rowe, B.R. K. Stafford, R. Walker, G. Haynes, and J. Arbuthonot. (2000). Unexpected outcomes. The economics of genderized homed-based business. In C.B. Hennon, S. Loker and R. Walker (eds.), Gender and home-based employment, Chapter 5. Auburn House, Westport, CT. Scannell Trent, E. (2000). Industry and Self-employment: Analysis by Gender. In C.B. Hennon, S. Loker, and R. Walker (Eds.). Gender and home-based work. Greenwood Publishing Group, Inc., Westport, CT. Presentations: Fitzgerald, M. A., G. Muske, C. Philbrick, and S. Grove. (November, 2000). In love and in business: Family and business functioning in copreneurial couples. National Council on Family Relations Annual Conference, Minneapolis, MN. (April, 2000). Reconceptualizing Family Business Performance, a lecture at Brauch College, New York, NY. (November, 2000). Reconceptualizing Family Business Performance, a lecture at Cornell University, Ithaca, NY. Conference proceedings: Masuo, D., R. Castro, and N. Olegario (In Press). Family owned businesses in the United States: A regional comparison. Papers of the 2000 Conference of the Western Region Home Management-Family Economics Educators.

Impact Statements

Date of Annual Report: 12/20/2001

Report Information

Annual Meeting Dates: 10/18/2001 - 10/20/2001
Period the Report Covers: 01/01/2001 - 12/01/2001

Participants

Sharon Danes, University of Minnesota

Sara Douglas, University of Illinois

Margaret Fitzgerald, North Dakota State University

Grace Fong, University of Hawaii at Manoa

Karen Goebel, University of Wisconsin

Ramona Heck, Cornell University and Baruch College

Cynthia Jasper, University of Wisconsin

Yoon Lee, Utah State University

Diane Masuo, University of Hawaii at Manoa

Glenn Muske, Oklahoma State University

Kay Obendorf, Cornell University, Administrative Advisor

Alma Owen, Purdue University

Jennifer Paul, Iowa State, Research Associate

Kay Stafford, The Ohio State University

Peggy Whan, University of Arkansas

Mary Winter, Iowa State University

Brief Summary of Minutes

Substantial time at the spring meeting was spent explaining the organization of the new data set made available for the first time at the meeting. Final copies of the basic documents for this phase of the project were distributed and explained extensively. Included were the coding manual, case completion status sheet, telephone interview for the business manager, introductory screen and short roster question sequence sheet, questions for introductory scenarios, telephone interview for the combination household/business manager and telephone interview of the household manager. Timelines for when certain tasks would be accomplished relative to this new data set were discussed along with a plan developed for conference presentations and manuscript preparation. The economic sustainability scales and the community sustainability scales under development were discussed with attendees forming committees to work on gathering further information for the formation of the scales. The group voted to use a consistent name when referring to this project: "National Family Business Survey 2000" and to refer to the group as the "Family Business Research Group." The group also discussed building connections with stakeholders for potential grants.

Substantial time at the fall meeting was spent discussing the structure of the data. Handouts were distributed that showed how the businesses divided into various sub-categories. The group identified up-coming work with attendees indicating the areas in which they would work. At the recommendation of the Policy Subcommittee, the group adopted the following: Members of the Technical Committee who consult and who use the data must meet the consulting policies and grants and contracts office policies of their home institutions. The Technical Subcommittee indicated the analysis of data would determine the future direction of the Technical Committee past 2004. The Economic Sustainability Subcommittee reported that their work was proceeding slowly. They discussed 12 to 13 of the proposed indicators but indicated they were having difficulty finding relevant data to apply to these measures. They have enlisted the help of a consultant at Cornell University and were encouraged to move forward as this is an important part of the overall goals of the project.

Minutes Attachment:

Attachment

Accomplishments

<ul> <li>Estimated the economic impact of family businesses. <li>Identified strategies families could take to increase their success and economic impact. <li>Worked with the Iowa State University Statistical Laboratory in making the decisions needed while the 2000 data were being gathered. Decisions included interpretation of interview schedule questions, data coding, and the construction of the initial data set. <li>Used a hot-deck method to impute missing data for business and family financial information. <li>Prepared extensive documentation for the Technical Committee detailing how to use the 2000 data. <li>Delivered copies of the 2000 data, with appropriate imputations and documentation, to each member of the NE167 Technical Committee. <li>Family FIRO theoretical model, one of interpersonal dynamics and change, was empirically tested and was verified. <li>Leveraged private sector funds from local banks to conduct a study of family businesses in Hawaii. <li>Promoted integrated research extension activities through publications of a research-based article posted on the college‘s Extension Service web site. <li>Promoted integration of research into the classroom through reporting of NE-167 findings in Family Resource area. <li>Analysis underway and publications drafted related to family succession/retirement issues and "problems" encountered (such as marketing strategies, regulations and laws, cash-flow). <li>Continued exploration measures of economically vulnerable communities available in Wisconsin to supplement the nationally specified measures. Cooperation with faculty from Agriculture Economics. <li>Departmental Seminar - sharing theoretical and applied dimensions of NE-167 with Consumer Science faculty and graduate students. Special emphasis in implications for Extension. <li>Worked on development of indicators for defining an economically vulnerable community. <li>Conducting analysis on comingling of finances among copreneurial couples. <li>Evaluated variations in success among copreneurial businesses by industry type. <li>Utilized research in entrepreneurship classes and extension education efforts. <li>Used 1997 manager and business characteristics to predict whether the 1997 manager would be involved with the business in 2000. More than 3/4 were still the owner/manager of the business. Male business owners were more likely than female owners to still be in the business, and successful businesses were the most likely to be open three years later, although the 1997 business manager may no longer be involved. <li>Reasons for discontinuing business involvement divided according to age, with older managers citing retirement and health problems, and younger managers citing resource issues and "wanting a change" as the primary reasons for getting out of the business.

Publications

Cox, E. S., & Heck, R. K. Z. (2000). Stakeholder responses: Summary views of the key stakeholders. In G. McCann & N. B. Upton (Eds.), The holistic model: Rethinking the role of the university-based family business center (pp. 87-99). Deland, FL: The Stetson University Family Business Center. Danes, S.M., & Amarapurkar, S. (2001). Business Tensions and Success in Farm Family Businesses. Family Economics and Resource Management Biennial, 4:178-190. Danes, S.M., Fitzgerald, N., & Doll, K.C. (2000). Financial and relationship predictors of family business goal achievement. Financial Counseling and Planning, 11(2):43-53. Danes, S. M., Leichtentritt, R., & Metz, M. (2000). Effects of conflict severity on quality of life of men and women in family businesses. Journal of Family and Economic Issues, 21(3):259-286. Danes, S. M., Olson, P.D., Zuiker, V.S., VanGuilder-Dik, A.N., & Lee, Y.G. (2001.). Cashflow problems within family businesses. Proceedings of the Association for Financial Counseling and Planning Education, Nov. 14-17, 2001, Orlando Florida, pp. 220-231. Duncan, K.A., Kim, J. H., & Stafford, K. (2001). Resource management practices of business owning families: A three nation comparison. Canadian Home Economics Journal. 55(1): 24. Duncan, K. A., Zuiker, V. S., & Heck, R. K. Z. (2000). The importance of household management for the business-owning family. Journal of Family and Economic Issues, 21(3):287-312. Fitzgerald, M.A., & Winter, M. (2001). The intrusiveness of home-based work on family life. Journal of Family and Economic Issues 22:75-92. Fitzgerald, M.A., Winter, M., Miller, N.J., & Paul, J.J. (2001). Adjustment strategies in the family business: implications of gender and management role. Journal of Family and Economic Issues 22:265-29 Heck, R. K. Z. & McCann, G. K. (2001). The Conclusion: Reshaping our vision and ideas about family business. In G. K. McCann & N. Upton (Eds.), Destroying myths and creating value in family business (pp. 65-71). Deland, FL: Stetson University. Heck, R. K. Z., Jasper, C. R., Stafford, K., Winter, M., & Owen, A. J. (2000). Using a household sampling frame to study family businesses: The 1997 National Family Business Survey. In J. A. Katz, (Ed.), Databases for the study of entrepreneurship (Advances in entrepreneurship, firm emergence and growth, Vol. 4, pp. 229-287). Stanford, CT: JAI Press. Heck, R. K. Z. & Stafford, K. (2001). The vital institution of family business: Economic benefits hidden in plain sight. In G. K. McCann & N. Upton (Eds.), Destroying myths and creating value in family business (pp. 9-17). Deland, FL: Stetson University. Hunts, H. J., Danes, S. M., Haynes, D. C., & Heck, R. K. Z. (2000). Gender and the paid work and family interface for home-working families. In C. B. Hennon, S. Loker, & R. Walker (Eds.), Gender and home-based work (pp. 79-117). Westport, CT: Auburn House. Jasper, C. R., Goebel, K., Stafford, K., & Heck, R. K. Z. (2000). Gender differences and similarities of management practices of home-based business owners. In C. B. Hennon, S. Loker, & R. Walker (Eds.), Gender and home-based work (pp. 119-136). Westport, CT: Auburn House. Masuo, D., Castro, R., & Olegario, N. (2001). Family Owned Businesses in the U.S.: A Regional comparison. Papers of the 2000 Conference of the Western Region Home Management-Family Economics Educators, pp. 66-77. Masuo, D., Fong, G., Yanagida, J., & Cabal, C. (2001). Factors Associated with Business and Family Success: A Comparison of Single Manager and Dual Manager Family Business Households. Spring, 2001. Journal of Family and Economic Issues, 22(1):55-74. Masuo, D.M., Li, G.L (2001). Some Factors in the Profitability of Small Family Businesses. Entrepreneurs Toolbox, ET-3 [Online]. July, 2001. Available: <a href="http://www2.ctahr.hawaii.edu"> http://www2.ctahr.hawaii.edu </a> Miller, N.J., Winter, M., Fitzgerald, M.A., & Paul, J. (2000). Family microenterprises: Strategies for coping with overlapping family and business demands. Journal of Developmental Entrepreneurship :5: 87-113. Stewart, C.C., & Danes S.M. (2001). Inclusion and control in resort family businesses: A developmental approach to conflict. Journal of Family and Economic Issues, 22 (3):293-320.

Impact Statements

Nonagricultural family businesses generated 54.2% of corporate receipts, 19.3% of partnership receipts, and 68.4% of all proprietors' business income in 1996.
Living in at least a two- generation family increases business revenue .39% or an average of $3,900 per firm.
Increasing the proportion of business owning families that reside in two generation families from 66% to 75% would be associated with an increase in business revenue of $3.4 billion annually in the U.S.
Reducing family tension by only 4% would increase annual firm revenue .04% or $400.
If 10% of business owning families reduced their family tension by 4%, family business revenue in the U.S. would increase $389 million.
Employing a relative living at home increases firm revenue $1,960. If only half of all family businesses employed one more relative of the owner, family business revenue in the U.S. would increase $9.5 billion annually.
If, when times were busy, the family hired temporary help the firm's revenue would increase $3,300 a year.
Assuming 25% of family businesses have a busy season, if half of those with a busy season would hire temporary help, family business revenue would increase $4 billion.
Family businesses find the Family FIRO model a usable problem-solving tool related to personal interdynamics and change.
Family businesses that have cashflow problems had higher liabilities, were more likely to be located in rural counties, were more likely to use business real estate to secure family loans, and have experienced household cashflow problems.
The business manager in family businesses with cashflow problems worked more hours and placed business needs over family needs within businesses compared to those who didnt experience cash-flow problems.
Operating a family business can be profitable and rewarding.
Perceived family success directly influences perceived business success, but not vice versa.
Intermingling of finances between the family and business systems occurred more often in businesses with cashflow problems.
Understanding the circumstances surrounding the change in an individual's status regarding his or her business will enable those who work with family business owners target the delivery of information, resources, and support that may spell the difference between business continuation and business failure.

Date of Annual Report: 10/16/2002

Report Information

Annual Meeting Dates: 10/06/2002 - 10/08/2002
Period the Report Covers: 01/01/2002 - 12/01/2002

Participants

Sharon Danes, University of Minnesota

Sara Douglas, University of Illinois

Margaret Fitzgerald, North Dakota State University

Grace Fong, University of Hawaii at Manoa

Karen Goebel, University of Wisconsin

George Haynes, Montana State University

Ramona Heck, Baruch College

Cynthia Jasper, University of Wisconsin

Yoon Lee, Utah State University

Diane Masuo, University of Hawaii at Manoa

Glenn Muske, Oklahoma State University

Kay Obendorf, Cornell University, Administrative Advisor

Alma Owen, The Purdue University

Holly Schrank, The Purdue University

Kathryn Stafford, The Ohio State University

Margaret Whan, University of Arkansas

Mary Winter, Iowa State University

Project web site: http:www.human.cornell.edu/NE167

Brief Summary of Minutes

Mid-year Meeting - 4/18-20/02

The mid-year meeting was held with 2 specific objectives in mind. The first objective was to work on the economic vulnerability data with Warren Brown of Cornell University. A tentative codebook was presented outlining the variables where Warren could access county level data, the year of the data, and what was known about the data set. The group further refined the data request for Warren.

The second objective was a review of the project goals, objectives, and timeline with a discussion among the members of what each person was currently working on or had plans to work on in the future. The previous work plan grid was discussed with some items dropped that were not priorities under the project goals and new items included. Following that discussion, it was decided that the group should pursue a two-year project extension until Sept. 2006.

Annual Meeting - 10/6-8/02

It was reported at the meeting that the request for an extension had been endorsed by the Multistate Committee of the Northeast Region with the understanding that we would continue to operate with the existing objectives. This request has been submitted to CSREES for final approval.

Ramona Heck reported on two upcoming conferences that Baruch College will sponsor. A "Tool Kit" for entrepreneurs is the product that will be developed from the first conference. While the first conference focuses on home-based business owners, the second will concentrate on women entrepreneurs. The individual/group authors agreed on deadlines and helped Ramona refine the various tools to be produced.

During the meeting, George Haynes reported on the progress of the development of the scale assessing the socioeconomic vulnerability of the communities in which the family businesses in the sample are located.. At present the scale has 21 variables with some variables measuring similar attributes of vulnerability. The committee made suggestions about reducing the number of variables in the scale. George will rerun the vulnerability estimates using the revised scale and effects on the scale‘s reliability. To assist him with validity issues, George asked that each member provide him with an estimate by local experts, of the vulnerability for each county. He will compare the experts‘ rating against the rating obtained using his final model.

Finally, the work grid was reviewed and modified. To improve communication among members, a policy for declaring articles and sharing abstracts from published works was discussed and agree upon.

Accomplishments

Accomplishments can be grouped into three categories: 1) those focused on the processes that need to be completed prior to data analyses, 2) specific data analyses, and 3) the presentation of findings and implications through publications and presentations. Processes completed include: <ul> <li> A modified version of household manager and business manager interview instruments for a new survey of family business households in Hawaii. <li> Assistance was provided by Iowa State University researchers to other members of the technical committee in understanding the complex data structure of the 2000 data. <li> A preliminary version of a socioeconomic vulnerability scale composed of community- and county-level variables was developed. <li> Two scales using subjective community variables in the data set were constructed <li> The assessment the effects of panel attrition between 1997 and 2000 on the representativeness of the 2000 sample, a step crucial to using the 2000 data set for further analyses. Analyses indicated that business managers not reinterviewed were younger, and that they managed younger, smaller, lower-income businesses than those who could be reinterviewed. It was suggested that, to correct the sample bias introduced by panel attrition, all analyses of the 2000 data include age of the manager or of the business, number of employees, and gross income from the business. </ul> Specific data analyses include: <ul> <li> A family FIRO theoretical model, one of interpersonal dynamics and change, was empirically tested and was verified. <li> Succession planning behavior (presence or absence of written plan to transfer ownership) among family business owners was examined <li> Cash flow problems of 673 family-owned businesses were investigated to predict the occurrence of cash flow problems in the business, household, and in both the business and household simultaneously. <li> Family business success was compared for female and male business managers. <li> Selected business, financial, and household characteristics were compared by wives‘ employment choices as well as factors that influenced wives‘ employment choices. <li> Wives‘ household management scores and their reported quality of life were compared by wives‘ employment types. <li> Analyses were completed that focused on predicting two different, but related, family business phenomena: the continued involvement by the owner-manager of a family business over time and the continuation of the business over time.. <li> The impact of variables related to the timing and sequencing of family and business development on the types of adjustment strategies used by family and business managers during hectic times was analyzed. <li> Descriptive statistics about copreneurs in the 2000 data set were completed <li> Family and business success was empirically tested on single manager family business households with a 1997 business manager still involved in the business in 2000. </ul> Accomplishments focused on the dissemination of findings include: <ul> <li> Rogoff and Heck served as Guest Co-Editors for a special issue of the Journal of Business Venturing Special Issue titled, "The Evolving Family/Entrepreneurial Business Relationship," which will be a major contribution to both family business and entrepreneurship research. <li> 13 conference presentations that: (1) introduced tools that can be used by financial counselors with family businesses to examine the dynamics of families and the co-mingling of finances, and (2) shared findings related to the economic contributions of family businesses, business performance, the effects of education, economic contributions and family business growth, and the contributions of family businesses run by copreneurs. <li> 1 extension workshop for family business leaders was presented on the nature and life span of copreneurs. </ul>

Publications

Danes, S.M., Rueter, M.A., Kwon, H.K., & Doherty, W. (2002). Family FIRO model: An application to family business. Family Business Review, 15(1), 31-43. Danes, S. M., Olson, P.D., Zuiker, V.S., VanGuilder-Dik, A.N., & Lee, Y.G. (2001.). Cash flow problems within family businesses. Proceedings of the Association for Financial Counseling and Planning. Fitzgerald, M. A., & Muske, G. (2002) Copreneurs: An exploration and comparison to other family businesses. Family Business Review, XV, 1-16. Heck, R. K. Z., Rogoff, E. G., Lee, Myung-Soo, & Stafford, K. (2002). The economic contributions of family business. United States Association of Small Business and Entrepreneurship, Annual Conference 2002. Heck, R. K. Z., & Stafford, K. (2001). The vital institution of family business: Economic benefits hidden in plain sight. In G. K. McCann & N. Upton (Eds.), Destroying myths and creating value in family business (pp. 9-17). Deland, FL: Stetson University. Heck, R. K. Z., & McCann, G. K. (2001). The Conclusion: Reshaping our vision and ideas about family business. In G. K. McCann & N. Upton (Eds.), Destroying myths and creating value in family business (pp. 65-71). Deland, FL: Stetson University. Lee, Y.G., Hong, G. S., Jasper, C. R., & Goebel, K. (2002). Succession Planning Behavior among Family Business Owners. Proceedings of the Association For Financial Counseling and Planning Education. Lee, Y. G., Gong-Soog Hong, & Rowe, B. R. (2002). Women‘s Work in Business Owning Families. Consumer Interests Annual, 48. Lee, Y. G. (2002). Gender Differences in Business Success: Evidence from the 1997-2000 National Family Business Survey panel data. Consumer Interests Annual, 48. Masuo, D., Fong, G., & Yanagida, J. (2002). A Comparison of Single Manager Family Business Households in 1997 and 2000. Consumer Interests Annual, 48. Olson, P. D., Zuiker, V. S., Danes, S. M., Stafford, K., Heck, R. K. Z., & Duncan, K. A. (In press). The impact of the family and the business on family business sustainability. Journal of Business Venturing,18(3) 2003, forthcoming. Muske, G., & Fitzgerald, M. A. (2002). Copreneurs--who continues and why? Evidence from the 1997-2000 National Family Business Studies, Consumer Interests Annual, 48. Muske, G., Fitzgerald, M. A., & Kim, J. (2002). Copreneurs as family businesses: Evaluating the differences by industry type. 16th Annual U. S. Association for Small Business and Entrepreneurship Conference Proceedings (CD-ROM). Rogoff, E. G., & Heck, R. K. Z. Heck. (In press). Reconceptualizing the interconnections with the evolving family/entrepreneurial business relationship [Introductory Editorial Note for Special Issue]. Journal of Business Venturing, 18 (3) 2003, forthcoming.

Impact Statements

IMPACT ON FAMILIES AND THEIR BUSINESSES, COMMUNITIES, AND SUPPORT NETWORKS:
Intermingling finances between family and business systems occurred more often in businesses with cash flow problems.
Businesses with cash flow problems had higher liabilities, were more likely to be in rural counties and to use business real estate to secure family loans.
When disagreements, tensions, and conflicts arise, addressing them through inclusion dimensions of the FIRO model rather than addressing control is critical.
Only 20 percent have a written succession plan, with male more likely to have a plan than females.
Owners consult with financial planners regarding succession only about 13 percent of the time.
Owners who started their own business are less likely to have a written succession than those who inherited it.
Effect of gender was significant for both perceived business success and success in achieving company goals; female managers had higher levels than male managers.
Goal clarification, adjustment strategies, and overall management were highest for wives employed only in family businesses.
With cash flow problems, wives' overall household management scores were lower than those without cash flow problems.
When wives had more children, were older, and had higher management scores, their satisfaction with family life increased.
Success of business, measured both subjectively and objectively, is important in predicting business continuity.
Analysis of the manager's reasons for leaving the business indicate that ceasing to be involved as manager should not necessarily be viewed as either a business failure or managerial failure.
Copreneurs are more likely to intermingle resources than non-copreneurs.
Coprenuers hired significantly fewer employees, were more often located in rural areas, were more likely to have young children in the household, and were less likely to borrow from a financial institution than non-copreneurs.
Copreneurs were more likely to use the family's finances to assist the business than non-copreneurs.
Copreneurs were not more likely to shift financial resources from the business to the family than non-coprepenurs.
IMPLICATIONS THAT CAN LEAD TO SUCCESS FOR BUSINESS-OWNING FAMILIES:
Target populations for interventions by educators, finance officers, and others working with the business community-are young entrepreneurs needing assistance with human and material resource development.
Reducing family tension by only 4 percent would increase annual revenue $400.
Employing a relative living at home increases revenue $1,960.
If, when times were busy, hiring temporary help would increase firm's revenue $3,300 a year.
Each additional family member employed by the business was associated with over 100 times more annual revenue than an additional unrelated employee.
Family system variables contribute most to explanation of cash flow problems.
Business system variables contributed most to identifying cash flow problems. Where cash flow problems are experienced in both the business and household simultaneously, intermingling of finances contributes most in explaining those problems.
Family businesses have a major impact on gross business revenues, jobs, and household income and asset accumulation.

Date of Annual Report: 12/16/2003

Report Information

Annual Meeting Dates: 10/19/2003 - 10/21/2003
Period the Report Covers: 01/01/2003 - 12/01/2003

Participants

*Sharon Danes, University of Minnesota;
*Margaret Fitzgerald, North Dakota State University;
Grace Fong, University of Hawaii at Manoa;
Karen Goebel, University of Wisconsin;
*George Haynes, Montana State University;
*Ramona Heck, Baruch College;
University of Illinois;
*Cynthia Jasper, University of Wisconsin;
*Yoon Lee, Utah State University;
*Diane Masuo, University of Hawaii at Manoa;
*Glenn Muske, Oklahoma State University;
Linda Niehm, Iowa State University;
Kay Obendorf, Cornell University, Administrative Advisor;
Alma Owen, Guest;
Edward Rogoff, Baruch College;
*Holly Schrank, The Purdue University;
Myung SooLee, Baruch College;
*Kathryn Stafford, The Ohio State University;
*Margaret Whan, University of Arkansas;
*Mary Winter, Iowa State University;
John Yanagida, University of Hawaii at Manoa;
* = State Project Leader. Others are additional researchers.

Participants Attachment:

Attachment

Brief Summary of Minutes

The meeting began at noon on Sunday, October 19, 2003 with a welcome by Mary Winter (IA) and an explanation of local arrangements. Minutes from the 2002 meeting (Madison, WI) were reviewed and approved.

Project Continuation

The NE-167 project was granted a 1-year extension through September 30, 2005. Options after that date are: (1) continue to meet for 1 more year as an NCT (North Central Technical Committee) proposal writing committee or (2) create a new North Central (NC) project. New proposal ideas were generated. Holly and Ramona were designated to write the proposal for NCT status if it will be submitted for the January 2004 meeting of the North Central Administrators 5 group (NCA-5).

Monograph Distribution

The monograph from the Spring 2003 home-based entrepreneurs conference at Baruch College will be mailed to contributors by the end of December 2003.

Second Monograph

Ramona Heck (NY) asked if the NE-167 members would be interested in working on a second monograph. This publication would focus on the larger group of businesses (n=673), but also include tools. No decision was made on this matter at this time.

Status of Minority Business Survey

Data collection from the African American sample has been completed. Work is ongoing with interviews of the Korean sample. Baruch College received funding from the Kaufmann Foundation for these surveys.

Fall 2004 Conference at Baruch College

This conference will focus on female entrepreneurs.

Online Publications

Grace Fong and Diane Masuo (HI) suggested that the NE-167 group consider translating the 2003 Baruch Conference chapters and their accompanying tools into lay terms and in an online format. They shared the web site for a sample article and its accompanying tool.

www2.ctahr.hawaii.edu/oc/freepubs/pdf/ET-5.pdf (article) www.ctahr.hawaii.edu/sp-web/estimator/ (the tool)

Contents of State Reports

NE-167 members agreed that "works-in-progress", non-archival presentations and "in-press" works should be included in state reports. A suggestion was made that for next year, members delineate accomplishments from impacts in their reports to facilitate compilation of the NE-167 Annual Report. State reports are to be posted to the NE-167 Listserve prior to the annual meeting.

Website Postings

Yoon Lee (UT) asked that abstracts from publications and presentations from 1997 through 2003 be sent to her for review and then later posting by Gret to the NE-167 website. Abstracts should be submitted prior to the annual meeting when state reports are prepared.

Declarations Procedure

Declarations are to be posted to the NE-167 Listserve. Approval is assumed, if after 30 days, if no objections are raised. The declarations process is outlined in the Policy Handbook, section 6a, page 3.

2000 NFBS Panel Data

NE-167 members are encouraged to share syntax for identifying sub samples of the dataset because of unique differences in the naming convention that was used in the 1997 NFBS compared to the 2000 dataset. However, variable numbers are identified in the SPSS-X extended variable name field for the 2000 data.

Mack Shelly, Director of the Research Institute for Studies in Education at Iowa State University presented a session on: techniques in the analysis of longitudinal panel data, and the use of the NE-167 community data in proposed analyses. Besides using examples from the NE-167 1997 and 2000 data in his presentation, Dr. Shelly shared the output from analyses he ran using: a paired t-test, cross tabs, repeated measures anova, cross-lagged correlations, analysis of covariance, and multivariate analysis of covariance, and the syntax for the HLM5 programs hierarchical linear and nonlinear modeling procedure.

Accomplishment of Project Objectives

NE-167 researchers completed an inventory of accomplishments relative to the project objectives. A methodology paper that uses both the 1997 and 2000 data is forthcoming in the Journal of Business Venturing, however, the team noted that more work needs to be done to compare outcomes over time (1997 to 2000).

The economic vulnerability subgroup has been working on an objective and a subjective measure that can be used to differentiate vulnerable from non-vulnerable communities. George Haynes (MT) described the process that was used to develop the objective measure. The "socio-economic vulnerability index" is a scale that consists of 29 variables obtained from internal (from 1997 and 2000 NFBS data) and external data sources. A methodology paper is being developed to explain the vulnerability index.

Margaret Fitzgerald (ND) shared initial factor analyses results that are being used to develop the subjective community measure. Work on a subjective scale is being completed and will be reported in a conceptual paper.

Dr. Cornelia Butler Flora, Director of the North Central Regional Rural Development Center reviewed the NE-167 committee‘s work. She encouraged timely completion of a methods article on the "socio-economic vulnerability index" and offered to assist with the marketing of this work.

Bibliographic Compendium of NE-167 Output

Holly Schrank (IN) reported that the bibliography is updated as of April 2003. Citations are based on a review print of versions of all publications. An updated bibliography will be sent through the Listserve, as members update their output in their state reports.

Election of New Chair

Glenn Muske (OK) and Diane Masuo‘s (HI) terms as Co-Chairs of the technical committee end with their submission of this year‘s Annual Report. They were re-elected for an additional year, through September 30, 2004.

Mid-Year Meeting

The next meeting was scheduled for May 22-24, 2004 in Columbus, Ohio. The purpose of this mid-year meeting is to complete the project objectives and to work on a proposal requesting NCT status or to work on a new project proposal.

Minutes Attachment:

Attachment

Accomplishments

A major accomplishment during this project year was the development of a "socio-economic vulnerability scale" by a subgroup of researchers. The purpose of the scale is to differentiate vulnerable from non-vulnerable communities across the nation. This kind of measure, once validated with other business datasets, will serve as an important decision-making tool for policy makers and elected officials as they develop supportive business climates including grant and loan programs for economic development purposes. This scale is an enhancement of previous work as it incorporates both economic and social factors that are known to influence the viability of a community. The NE-167 researchers recognize that a more complete measure of community vulnerability requires both objective and subjective measurements. Therefore, a complementary subjective vulnerability scale is being developed from community indicators in the 2000 panel dataset. Pilot testing of this scale will occur during the next project year. Dissemination of research findings is another major contribution of this research project. NE-167 researchers, in collaboration with the Lawrence Field Center for Entrepreneurship and Small Business at Baruch College, New York, presented a "Spring 2003 Conference, A Tool Kit for Home-based Entrepreneurs and Family Business Owners." This effort resulted in a monograph consisting of 15 chapters, 6 of which were presented at the conference to business owners and counseling staff at the Field Center. In addition to work on home-based family businesses, researchers disseminated findings from other subgroups of family businesses through 7 articles in refereed journals, 3 abstracts, 2 Internet articles, 2 proceedings articles, and 1 newsletter article. The publication venues included business and financial management journals. Conference presentations were made in the U.S. and in Europe. Several states conducted related family business research in their respective states. In one of the member states, the 1997 NFBS was replicated to provide state level family business data. In another state, senior business leaders from the 1997 NFBS were studied.

Publications

Objective 1: To compare the interaction of family and business systems in economically vulnerable and non-vulnerable communities. Danes, S.M. & Olson, P.D. (2003). Womens role involvement in family businesses, business tensions, and business success. Family Business Review, 16 (1), 53-68. Danes, S.M. (2003). Conflict identification: Tensions generated by home-based business issues. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. 15-27). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Duncan, K.A., Stafford, K., & Zuiker, V.S. (2003). Household management: Managing home and family in home-based business. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. 42-53). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Fitzgerald, M.A., Muske, G., & Philbrick, C.A. (2003). Business integrity: Relationships in the work-place environment of home-based businesses. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. 79-90). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Fitzgerald, M.A., Heck, R.K.Z., & Masuo, D.M. (2003). The 1997-2000 national family business surveys: An examination of U. S. family firms. Proceedings from the International Family Enterprise Research Academy annual conference. Fong, G., Masuo, D., & Yanagida, J. (2002). A comparison of single manager and dual manager family business households, their businesses, and changes in their characteristics between 1997 and 2000. {Abstract} In J. Lown (Ed.). Papers of the 42nd annual conference of the Western Region Home Management Family Economics Educators, 17, pp. 42-43. (Based on a refereed poster by G. Fong at the Western Region Home Management Family Economics Educators conference, Spokane, Washington, October 19-21) Fredricks, K. & Winter, M. (2003). A profile of home-based entrepreneurs. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. xxiii-xxxi). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Heck, R.K.Z. (2003). Stress scale: Effects of life events on home-based businesses and their families. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. 140-151). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Heck, R.K.Z., Fitzgerald, M.A., & Masuo, D.M. (2003). The 1997-2000 national family business surveys: An examination of U.S. family firms. International Family Enterprise Research Academy annual conference, Milan, Italy. Jasper, C.R., Goebel, K.P. and Lee, Y.G. (2003). Business issues: Identification & retirement planning/succession. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs. NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Lee, Y.G., Jasper, C.R., and Goebel, K.P. (2003). A profile of succession planning among family business owners. Financial counseling and planning, 14(2). Masuo, D., Fong, G., & Yanagida, J. (2003). Business and family outcomes. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. 116-127). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Masuo, D., Fong, G., & Yanagida, J. (2003). Factors affecting perceived business and family success. CTAHR Entrepreneurs Toolbox. ET-5. Accompanied by link to success estimator tool. Web only: http://www2.ctahr.hawaii.edu/oc/freepubs/pdf/ET-5.pdf Masuo, D., Fong, G., & Yanagida, J. (2003). Family owned businesses in Hawaii-2001: A preliminary report. Prepared for CTAHR and the Family Business Center, University of Hawaii. Muske, G., Fitzgerald, M.A., & Haynes, G. The intermingling of financial resources among copreneurial couples. United States Association of Family and Consumer Sciences annual conference. El Reno, OK, March, 2003. Muske, G., & Fitzgerald, M.A. (2003). The intermingling of family and business financial resources in copreneurial couples. 17th Annual United States Association for Small Business and Entrepreneurship annual conference proceedings (CD-ROM), Madison, WI: USASBE, 93. Muske, G., & Fitzgerald, M.A. (2003). The intermingling of family and business financial resources in copreneurial couples. United States Association for Small Business and Entrepreneurship, Hilton Head, SC, January 2003. Muske, G., Fitzgerald, M.A., & Kollmorgen, N. (2003). Business management: How practice affects business and family success in home-based business. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. 104-115). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Owen, A. and Schrank, H. (2003). Family types. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. 54-65). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Rogoff, E.G., & Heck, R.K.Z. (2003). Evolving research in entrepreneurship and family business: Recognizing family as the oxygen that feeds the fire of entrepreneurship. [Introductory Editorial Note for Special Issue], Journal of Business Venturing, 18(3), 559-566. Rogoff, E.G., & Heck, R.K.Z. (Guest Co-Editors). (2003). The evolving family/entrepreneurial business relationship [Special Issue], Journal of Business Venturing, 18(3). Stafford, K., Duncan, K.A., & Zuiker, V.S. (2003). Family Integrity: Home-based business-owning families. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. 128-139). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Winter, M. & Fredricks, K. (2003). Adjustment strategies: Sharing human resources for home-based business. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. 1-14). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Winter, M. (2003). Methodologies of 1997 and 2000 National Family Business Surveys. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. 158-166). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Zuiker, V.S., Lee, Y.G., Olson, P.D., Danes, S.M., VanGuilder-Dik, A.N., Katras, M.J. (2002 issue; published in 2003). Business, family, and resource intermingling characteristics as predictors of dash flow problems in family-owned businesses. Journal of Financial Counseling and Planning, 13(2), 65-81. Objective 3: To estimate the economic and social contributions of family businesses to communities over time. Olson, P.D., Stafford, K., & Zuiker, V.S. (2003). Professionalizing. In R.K.Z. Heck, A. N. Puryear, & P. A. Tombline, (Eds.). (2003). Home-based entrepreneurs conference proceedings; A toolkit for home-based entrepreneurs (pp. 66-75). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Olson, P.D., Zuiker, V.S., Danes, S.M., Stafford, K., Heck, R.K.Z., & Duncan, K. A. (2003). The impact of the family and business on family business sustainability. Journal of Business Venturing, 18(5), 639-666. Zuiker, V.S., Katras, M.J., Montalto, C.P., Olson, P.D. (2003). Hispanic self-employment: Does gender matter? Hispanic Journal of Behavioral Sciences, 25(1), 73-94.

Impact Statements

Using good business practices, setting standards of performance for family members working in the business, and increasing satisfaction levels in the household and the business are strategies that are related to business success
Family business success is related to maintaining boundaries between family roles versus family business roles
Businesses with cash flow problems had higher liabilities, were more likely to be located in rural counties and were more likely to use business real estate to secure family loans
The household is at greater risk than the business because the greatest financial intermingling occurs from the household to the business
Over the three year period (1997 to 2000), satisfaction with work situation and business management practices affected business success and goal achievement

Date of Annual Report: 12/06/2004

Report Information

Annual Meeting Dates: 10/16/2004 - 10/18/2004
Period the Report Covers: 01/01/2004 - 12/01/2004

Participants

*Sharon Danes, University of Minnesota

*Margaret Fitzgerald, North Dakota State University

Grace Fong, University of Hawaii at Manoa

Karen Goebel, University of Wisconsin

*George Haynes, Montana State University

*Ramona Heck, Baruch College

University of Illinois

*Cynthia Jasper, University of Wisconsin

*Yoon Lee, Utah State University

*Diane Masuo, University of Hawaii at Manoa

*Glenn Muske, Oklahoma State University

*Linda Niehm, Iowa State University
Kay Obendorf, Cornell University, Administrative Advisor
Alma Owen, Guest
Edward Rogoff, Baruch College
*Holly Schrank, Purdue University
Myung SooLee, Baruch College
*Kathryn Stafford, The Ohio State University
Jane Swinney, Oklahoma State University
*Margaret Whan, University of Arkansas
Mary Winter, Iowa State University
John Yanagida, University of Hawaii at Manoa

* State Project Leader. Others are additional researchers.

Participants Attachment:

Attachment

Brief Summary of Minutes

Minutes of the mid-year meeting (May 22-24, 2004) are available at http://www.human.cornell.edu/ne167/minutes/Min0504.html.

The meeting was called to order on Saturday, October 16, 2004 by Co-chair, Glenn Muske at the University of Minnesota, St. Paul, MN. Minutes of the 2003 meeting (Des Moines, IA) were approved.

Project
Status

The NE-167 project terminates on September 30, 2006. Timelines were reviewed by Administrative Advisor, Kay Obendorf, for the following options: (1)requesting a move to the North Central region and (2) requesting permission to form an NC proposal writing committee. The NC writing committee request will be submitted in
December, 2004.

State
Reports and Declarations

State reports were presented and discussed by project objective. Researchers were asked to review and revise the impact statements in their state reports, and to repost the reports to the listserve. Also, the group was encouraged to post abstracts from completed works that are included in the state reports, to the NE-167 web site.

The declarations policy was reviewed. While the current policy deals with the declaration process, the policy does not identify what (i.e., data set, all variables in the codebook, etc.) needs to be declared. The policy committee will review the declarations policy and recommend changes.

Report from CSREES Advisor

Jane Schuchardt, CSREES Advisor, reviewed her role at CRSEES and provided us with information about the topics and issues of particular interest at the Federal level. She presented suggestions on publication and presentation outlets for NE-167 work as well as contacts for funding sources.

African-American Dataset available from Baruch College

Ed Rogoff, Baruch College, reported that the minority data is available for use by NE-167 researchers. He recommends that we follow a declaration process so that all involved researchers know about ongoing projects. It was suggested that the NE-167 declarations process for publications be used for that purpose. The NE-167 Co-chairs will work with Ed regarding access to the declaration process, codebook and dataset.

State Leader Representation from Illinois and Arkansas

The University of Illinois, Champaign-Urbana and the University of Arkansas have been contacted regarding the appointment of a state leader from both institutions. Both universities contributed to the funding of NE-167.

Election of NE-167 Secretary

Holly Schrank,
Purdue University, was re-elected.

Next Meeting

The purpose of the next meeting in April, 2005 is to develop the next proposal and to elect leadership for a new project. The next meeting will be at Columbus, Ohio from April 10-12, 2005 (Saturday thru noon on Monday), to coincide with the annual ACCI meeting. If the NC writing committee request has been approved, the group will meet with its new NC Administrative Advisor.

Final NE-167 Meeting

The fall meeting is tentatively scheduled for October 8-10, 2005 in one of three locations: (1) Indianapolis, IN, (2) Minneapolis, MN, or (3) Kansas City, KS. Co-chair Glenn Muske will report back to the group.

Family Business Research Group International Data Collection

Kay Stafford (Ohio) and Sharon Danes (Minnesota) will investigate the
costs versus benefits of participating in an international data collection effort and report back to the group.

Proposal Development

Future research directions, objectives, methodology, etc. were discussed. Commitments by researchers were made for tasks needed to ensure completion of the proposal

New objective 1
To describe and estimate the contribution of family and community resources,
structures and processes to the success of the family business.

New objective 2
To describe and estimate changes in structures, strategies, resource
allocations, and processes by family-owned businesses and their families caused
by:

(a) major events (possible internal and external, e.g. 9/11, birth, death, divorce, detention, etc.)

(b) major changes in public policy (possible internal choices or external "mandates" e.g., food safety, patriot act, Sarbanes/Oxley act, immigration, tax structure changes, government aid and tax incentives)

Commitments were made by researchers for completing various tasks by deadlines that will enable timely completion of a proposal by early Summer 2005. The proposal will then be sent out for peer review in time for revisions and completion of a final version, which will be submitted to NCA-5 in December 2005 for the initial stage of the approval process.

The business meeting was adjourned at 11:53AM on October 18, 2004.

Accomplishments

Accomplishments can be grouped into two categories: 1) specific data analysis, and 2) the presentation of findings and implications through publications and presentations. (Intermingling) <li>Measurements of financial intermingling between family and business tensions for family business owning husbands and wives, in a family and non-family businesses.</li> (Community Variables) <li>Identification of the community social responsibility characteristics of managers has an influence on business success.</li> (SEV Scale) <li>The development of a socioeconomic for counties which measure the socioeconomic conditions in a local area.</li> (Succession Planning) <li>Use of logistic regression analysis to predict succession planning.</li> (Panel Data) <li>Comparison of panel data in 1997 and 2000 - attrition can be handled by measuring business stability.</li> Findings and implications include: <li>Business cash flow problems and community support are important factors that predict business success for family-owned businesses in both vulnerable and non-vulnerable counties.</li> <li>Business resources and constraints are significant predictors of business success for family-owned businesses in more and less vulnerable counties.</li> (Tensions) <li>Decision-making involvement by the spouse in a family business and business tensions affect the relationship of family business-owning couples.</li> <li>For both spouses within family business-owning couples, having the husband place family over business in priority, having a high level of functional integrity in the family system, and having a wife who was satisfied with her role in the business was associated with decreased tensions.</li> (Succession Planning) <li>Family business owners with a succession plan tended to be older, worked longer hours in the family business, had few children, and had higher business management scores than did those without a succession plan.</li> (Panel Data) <li>Ceasing to be involved in a business should not be viewed as a business or a managerial failure. Some changes may be failures, but others should be viewed as ordinary business or family developments.

Publications

Objective 1 Danes, S.M., & Haberman, H. R. (2005). Gendered discourse about family business. Family Relations, 54,116-130. Danes, S.M., & Morgan, E.A. (2004). Family business-owning couples: An EFT view into their unique conflict culture. Contemporary Family Therapy, 26(3), 241-260. Danes, S.M., & Lee, Y.G. (2004). Tensions generated by business issues in farm business-owning couples. Family Relations, 53, 357-366. Haynes, G. W., & Muske, G. (2004). Business and family income: Resource intermingling and financial success. In R. K. Z. Heck, A. N. Puryear, & P. A Tombline, (Eds). A Toolkit for Home-based Entrepreneurs (pp. 78-90). NY: Baruch College Lawrence N. Field Center for Entrepreneurship and Small Business. McCann, G., Hammond, C., Keyt, A. Schrank, H., & Fujiuchi, K. (2004). A View from Afar: Rethinking the Director's Role in University-Based Family Business Programs. Family Business Review, 17(3), 203-217. Winter, M., Danes, S.M., Koh, S., Fredericks, K., & Paul, J. (2004). Tracking Family Businesses and their Owners Over Time: Panel Attrition, Manager Departure, and Business Demise. Journal of Business Venturing, 19, 535-559. Jasper, C.R., Goebel, K.P., & Lee, Y. (2003). Business Issues: Identification & Retirement Planning/ Strategies Succession. In R.K.Z. Heck, A.N. Puryear, & P.A. Tombline, (Eds.). A Toolkit for Home-Based Entrepreneurs (pp. 140-151). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Lee, Y.G., Jasper, C.R., & Goebel, K. (2003). A Profile of Succession Planning: Among Family Business Owners. Journal of Financial Counseling and Planning. 14, (2), 1-12. Paul, J., Winter, M., Miller, N. J., & Fitzgerald, M. A. (2003). Cross-institutional norms for timing and sequencing and use of adjustment strategies in families affiliated with family-owned business. Marriage and Family Review, 35, 167-191. Objective 2 Fitzgerald, M. A., Muske, G., & Philbrick, C. (2004). Business satisfactions: Relationships in the work environment. In R. K. Z. Heck, A. N. Puryear, & P. A Tombline, (Eds). A Toolkit for Home-based Entrepreneurs (pp. 101-112). NY: Baruch College Lawrence N. Field Center for Entrepreneurship and Small Business. G. W., & Muske, G. (2004). Business and family income: Resource intermingling and financial success. In R. K. Z. Heck, A. N. Puryear, & P. A Tombline, (Eds). A Toolkit for Home-based Entrepreneurs (pp. 78-90). NY: Baruch College Lawrence N. Field Center for Entrepreneurship and Small Business. Muske, G., Fitzgerald, M. A., & Kollmorgen, N. (2004). How business management practices affect business success and the family. In R. K. Z. Heck, A. N. Puryear, & P. A Tombline, (Eds). A Toolkit for Home-based Entrepreneurs (pp. 125-135). NY: Baruch College Lawrence N. Field Center for Entrepreneurship and Small Business. Objective 1+2 Danes, S.M., & Lee, Y.G. (2004). Tensions generated by business issues in farm business-owning couples. Family Relations, 53, 357-366. Haynes, G., Muske, G., Fitzgerald, M., Fong, G., & Douglas, S. (2004). Developing a county-level socio-economic scale. 2004 Community Development Society Proceedings. Haynes, G., Muske, G., & Fitzgerald, M. A. (July, 2004). Developing a socio-economic scale. Community Development Society Conference, Cleveland, OH. Lee, Y.G., Jasper, C.R., & Goebel, K. (2003). A Profile of Succession Planning: Among Family Business Owners. Journal of Financial Counseling and Planning. 14, (2), 1-12.

Impact Statements

Intermingling has a potentially negative impact on the household because household assets are placed at risk for the benefit of the business.
Community social responsibility of managers has an influence on business success.
For business-owning couples or families who are in moderate to great distress, a couple or family therapist with knowledge both in family business dynamics and Emotion Focused Therapy would be the most beneficial aid in addressing the complex dynamics of family businesses.
For both spouses, having the husband place family over business in priority, having a high level of functional integrity in the family system, and having a wife who was satisfied with her role in the business was associated with decreased tensions.
Gender, age, and health status are significant predictors of business success.
The most important factor in continuity of the business is the respondent‘s assessment of the business as a success; successful businesses continue or are sold or gifted when the owner-manager leaves the business.
Family business owners should utilize financial services of business consultants, lawyers, accountants and financial planners to help them solve business problems or other issues inherent in the business.
Educational programs need to be developed to teach families how to protect themselves from the risks posed to family assets by business ownership and use of intermingling.
Succession planning can be promoted by fostering certain family practices such as: treating children equally, and maintaining strong kinship bonds with one‘s extended family.

Date of Annual Report: 05/12/2005

Report Information

Annual Meeting Dates: 04/09/2005 - 04/11/2005
Period the Report Covers: 01/01/2005 - 05/01/2005

Participants

Present: Diane Masuo, Hawaii; Margaret Fitzgerald, North Dakota; Linda Niehm, Iowa; Sharon Danes, Minnesota; Kay Stafford, Ohio State; Cynthia Jasper, Wisconsin; Yoon Lee, Utah; Karen Goebel, Wisconsin; Kay Obendorf, Administrative Advisor; Jane Schuhardt, CREES-USDA.

Brief Summary of Minutes

The meeting was opened by co-chair Diane Masuo at 12:30 PM on April 9, 2005.

Goals for the meeting

1) Discuss progress on completing current project (including state reports)

2) Business

(a) advisor reports

(b) update policy paragraph for acknowledgment (to include 2000 data), giving credit (Cynthia and Kay)

(c) other business

(d) next meeting and agenda items

3) Finalize proposal objectives and make assignments for proposal completion.

BUSINESS MEETING

Administrative Advisor Report: (Kay Obendorf)

1) On March 8, 2005 Kay Obendorf was informed about the change of ending date for this project from September 30, 2006 to September 30, 2005. Due to a lack of clarity on the response to the request for a two-year extension of the NE-167 project, a formal request for a second one-year extension is being submitted to Dr. Tom Fretz, North East Executive Director.

2) www.wisc.edu/ncra/guidelines.htm (NC guidelines for proposals)

3) A question was raised about national research projects. National Research support projects, NRSP, 4 different regional groups, CSREES rep. and scientists. Not primarily research, and not appropriate for us. Eligible for off the top funding.

4) To do. Need to connect to our NCA-5 representative to keep them informed on our intent and accomplishments. Also need to visit with Darryl Lund to keep him informed.

5) Cindy reported that the policy manual update on the acknowledgements when the 1997 and 2000 data is used was completed and is on the website.

CREES Report: Jane Schuhardt (JS)

1) Rural development focus in 06, markets and trade in 07. 06 is currently in the comment period. Jane will have opportunity for input. The focus will on integrated that include both resident education and extension outreach. Presently has 3 components: a) rural and economic development, b) broadband and interconnectivity and e-commerce, c) enhance rural economic opportunity/rural governance and civic engagement/local response to devolution. Kay Stafford asked about the NRI small business innovation grants, JS explained that those grants go to small businesses not to researchers.

2) ERS and CREES in very early discussions on interface of farm family household assets and the family farm business assets. Shared faculty (buy someone's time) or IPA (bring someone to DC to work with the two agencies to work with someone on the subject area). Panel manager selects panelists based on knowledge of content of the proposals.

3) Community vulnerability index (CVI). NACO is very interested in this. Jane referred this group to George and Glenn. They can help to fund something like this. Also in beginning idea stages.

4) 06 completion of NE 167. Jane has the documents and has asked Bart to call her tomorrow to discuss the situation and look at possible alternative solutions.

5) Jane requested sound bite material that she can use in presenting our work within the area of her responsibilities in the context of the purposes of the group.

Miscellaneous Business

Leadership
Kay and Cindy are willing to shepherd the proposal thru NC process, but not chair the committee and run the committee's meetings. Cindy suggested Diane and Glenn continue leadership of NE 167 until it is terminated.

Report on future participation of other states
Jane suggested she could send out an invitation from us to a variety of groups.
Bring in people as co-authors, grant participants, etc.

Discussion of options for committee formats
We decided to move toward the research proposal for an NC committee. Kay will shepherd and do the first draft. Cindy & Karen will be back-up, with Linda and Margaret's support.

Kay S. moved that we write an NC research proposal to be finished by Thanksgiving, 2005 (so it can be submitted to NCA-5). Cindy seconded. Vote unanimous.

Use of funds
Moved by Holly and seconded by Cindy that we allocate up to $500 for review and editing of the new proposal. Approved. (Need consultant invoice and resume, ss#).

Next meeting
This is the last regular meeting of NE 167 without an extension approval. The next meeting must be after October 1, 2005 and would be pending approval of a second one-year extension by the NE directors.

Tentative date of next meeting
April 2-3, 2005 starting on 9 AM on Sunday to Monday noon. University of Minnesota (Backup will be University of Wisconsin, same dates) Travel on Saturday, out on Monday afternoon.

Agenda
Results, distribution ideas, impact report, packaging formats for distribution. State reports.

NEXT PROJECT OBJECTIVES, ASSIGNMENTS

Objectives

(Purpose: to analyze the interconnectedness of (reciprocal relationships of) family businesses and rural and urban communities in an environment of change.

Objectives:

1. Analyze the effects of family businesses and communities on the vitality of each.
a.) analyze the effects of family businesses on rural and urban community vitality. (e.g. social and economic impacts)
b) analyze the effects of community on family business vitality.

2. Analyze the effect of internal and external events and policy changes on
a) family businesses
b) the reciprocal relationships between them.

Assignments were made for completion of various parts of the proposal. Deadlines were established.

The meeting was adjourned by Diane Masuo at 11:45 AM on April 11, 2005.

Accomplishments

NE-167 official representatives identified the activities and papers that were completed or in progress since the October, 2004 meeting. The items are arranged by objective number for the project. (Published work prior to October, 2004 is listed in the bibliography of completed and published work to be found at http://www.human.cornell.edu/ne167 )

Publications

1) To compare the interaction of family and business systems in economically vulnerable and non-vulnerable communities. Completed (i.e. published or presented, or written and submitted) Fitzgerald and Folker. (2005) Exploring new frontiers in women's business ownership. International Journal of Family Business. Reprinted with permission from FBN/IFERA. OBJ. 1 Danes, S. M., & Haberman, H. R. (2005). Gendered discourse about family business. Family Relations, 54, 116-130. 2) To identify effects of community structure and characteristics on families and their businesses. Completed Lee, Masuo and Malroutu. "Business longevity: A study of family owned businesses in the U.S.". Submitted for presentation at the Asian CFEA conference in Nov. 2005. OBJ 2 Niehm, community social responsibility paper with Miller and Swinney. Identified CSR factors for family owned business and profiled the business and looked at CSR as a success strategy. Journal of Small Business Management (in review). Haynes, G., Muske, G., Fitzgerald, M., Fong, G., & Douglas, S. (2004). Developing a county-level socio-economic scale. 2004 Community Development Society Proceedings. Haynes, Muske, & Fitzgerald. Deriving a socio-economic vulnerability scale. Journal of the Community Development Society. Revise and resubmit. 3) To estimate the economic and social contributions of family businesses to communities over time. Completed Danes, S. M., & Morgan, E. A. (2004). Family business-owning couples: An EFT view into their unique conflict culture. Contemporary Family Therapy, 26, 241-260. Danes, S. M. (in press). Tensions within family business-owning couples over time. Trauma, Crisis and Stress: An International Journal. OBJ. 3 Danes, S.M. (2005) Business conflict within family business-owning couples over time. Invited panel paper presented at USASBE Annual Conference. January 13-16, 2005, In 2005 USASBE Annual Meeting Proceedings. Indian Wells, CA. Schrank. The National Family Business Survey: Theoretical Model and Methodology. Invited panel paper presented at USASBE Annual Conference. January 13-16, 2005, In 2005 USASBE Annual Meeting Proceedings. Indian Wells, CA. Niehm, Miller & Fitzgerald (2005). Assessing the impact of managerial adjustment strategies on family business success over time. Invited panel paper presented at USASBE Annual Conference. January 13-16, 2005, In 2005 USASBE Annual Meeting Proceedings. Indian Wells, CA.. OBJ 3. Used 1997 adjustment strategies to predict who survived in 2000 and who was successful. Muske & Fitzgerald (2005). Copreneurs & time: Who leaves? Who stays? Invited panel paper presented at USASBE Annual Conference. January 13-16, 2005, In 2005 USASBE Annual Meeting Proceedings. Indian Wells, CA. OBJ 3 IFERA paper (submitted 1997-2000 data). The social responsibility of family business owners to their communities. Submitted by Margaret, George, Sharon and Holly for presentation in Sept. 2205 at the IFERA conference in Brussel. OBJ 2 and 3. One interesting finding was that there seemed to be more socially responsible activity on the part of business owners when the community was more vulnerable. ACCEPTED. Heck, Danes, Fitgerald, Haynes, Jasper, Schrank, Stafford. Role of family in family business entrepreneurship. Book chapter. (IFERA editors.) Family Business Research Handbook. Elgar Publishing Co. OBJ 3 In review. Muske & Fitzgerald. A panel study of copreneurs in business: Who enters, continues and exits? Under review at Family Business Review. OBJ 3 NRI proposal on impact of public policy on contributions of rural communities. George, Sharon, Kay S. (pure and impure altruism, estimate value economic and social contributions of FB, estimate impact of public policies on FB contribution to rural communities.) Not Funded. OBJ 3.

Impact Statements

Date of Annual Report: 05/26/2006

Report Information

Annual Meeting Dates: 04/01/2006 - 04/02/2006
Period the Report Covers: 05/01/2005 - 04/01/2006

Participants

*Sharon Danes, University of Minnesota

*Margaret Fitzgerald, North Dakota State University

Grace Fong, University of Hawaii at Manoa

Karen Goebel, University of Wisconsin

*George Haynes, Montana State University

*Ramona Heck, Baruch College

*Cynthia Jasper, University of Wisconsin

*Yoon Lee, Utah State University

*Diane Masuo, University of Hawaii at Manoa

*Glenn Muske, Oklahoma State University

*Linda Niehm, Iowa State University

Kay Obendorf, Cornell University, Administrative Advisor

Alma Owen, Guest

Edward Rogoff, Baruch College

*Holly Schrank, The Purdue University

Myung SooLee, Baruch College

*Kathryn Stafford, The Ohio State University

Jane Swinney, Oklahoma State University

John Yanagida, University of Hawaii at Manoa

* State Project Leader. Others are additional researchers.

Brief Summary of Minutes

Present: Margaret Fitzgerald, North Dakota; Diane Masuo, Hawaii; Sharon Danes, Minnesota; Helen Pushkarskaya, Kentucky; Cindy Jasper, Wisconsin: Maria Marshall, Indiana; Jane Swinney, Oklahoma; George Haynes, Montana; Kay Stafford, Ohio; Holly Schrank, Indiana; Yoon Lee, Utah; Linda Niehm, Iowa; Kay Obendorf, Administrative Advisor.

Unable to attend: Ramona Heck, Baruch; Glenn Muske, Oklahoma; Jane Schuhardt, CSREES.

Diane Masuo and Margaret Fitzgerald served as co-chairs. Holly Schrank served as recording secretary.

Administrative Advisor report: The reviews of the Multi-state Project Research Committee are on NIMSS. The new number is NC-1030. There are two more steps to final approval with Daryl Lund reporting to the NC Directors at their summer meeting and then forwarded to CSREES. Then each station will have to prepare forms for participation (CRIS forms AD 416 and 417) to establish the project locally. Kay Obendorf anticipates multi-state approval would be effective October 1, 2006. Local approval is up to each of us in our states

Administrative Advisor for new project. The NC Multi-state committee assigns the administrative advisor. Kay Obendorf is temporarily assigned, but another advisor assignment from the NC region will be made at a later date.

Termination of NE-167. The annual report, which documents the completion of all objectives, will serve as the project termination report. It communicates project research achievements, results, outcomes, impacts, and benefits to stakeholders over the lifetime of the project. The final report is due 60 days after this meeting.

State termination reports. We will also have to do individual state termination reports after the project ends, and those reports must then be accumulated.

Voting protocol: Diane clarified voting protocol, which is that only current members can vote on NE167 matters, while matters relating to NC 1030 will include the new members. There is one vote per state. New members should also consult the group's governance rules for other rules and guidelines. These are located on the website at www.human.cornell.edu/NE167.

Our funds. Our account account balance is $5500. We just received $1,000 for use of our data by PSID, University of Michigan. The remaining funds are left over from the shared data collection fund. Some was spent for data set preparation by CISER, and on a statistical consultant. The funds are in a Cornell account that has no overhead or administrative fees. We need to to spend the funds or move them to another location. Margaret will investigate the relocation of the funds to North Dakota.

Website, public versus private: Kay Stafford raised a question about our two web-sites, one on Cornell server (private) and the other at Ohio State (public). At present, a list of publications , are on both websites. Committee business is only on the Cornell website. We need to identify a webmaster and migrate information on the Cornell site to a new location (e.g., administrative advisor or executive committee members' university) and maintain only 1 site. Ideally, links to online journal articles should be public, but we should consider password protection for our declarations and other private materials we may wish to post.

Elgar chapter update. It is currently in press. The citation format is: Poutziouris, P.Z., Smyrnius, K. X. and Klein, S. (Eds.) (2006, in press). Handbook of Research on Family Business. United Kingdom: Edward Elgar Publishing, 600 pp. (Each contributor will receive a copy.)

New Business

Election of Officers for proposed NC-1030, effective October 1, 2006 for period noted.

Nominations were made for the executive committee for NC-1030 and voted upon.

The members elected unanimously were:

Chairman: Margaret Fitzgerald, North Dakota (1 year)

Secretary: Yoon Lee, Utah (2 years)

Member at large: Linda Niehm, Iowa (1 year)

Current officers will continue through the end of NE-167 and be responsible for completing the termination annual report.

State Reports. Diane circulated a compiled list of state reports to be checked for completeness. Diane has already been asked to write the final impact statement. We reviewed our current declarations and discussed work in progress.

Preparing the NE 167 Final Report. We identified accomplishments and impacts to be included in the final report.

Farewell. Gifts and messages of appreciation were conveyed to Kay Obendorf for her outstanding commitment and service as administrative advisor for NE-167.

New project

NRI and NSF submitted grant proposals. Both proposals are based at MN with sub-contracts to OSU and MSU. The NRI budget is about $500,000. NSF is approximately $300,000, with Iowa State University's (ISU) data collection targeted at $100,000. Overhead for NRI is 25% from all three schools; subcontracts are double charged. ISU would do 15 minute interviews with $20 incentives for respondents. Some hourly and GA help is identified for data preparation and cleaning. NRI requires travel by the PI to DC annually and travel to ISU to supervise pilot testing of interviews.

Governance issues. We discussed the need for a declarations process for grant proposals. This would involve a notification system similar to declarations, including collaborator response, maintenance of up-to-date collaborator forms, conflict of interest forms, and human subjects approval for each participating institution. All of this would be posted on our website. Perhaps each project leader needs to have a letter on file in their sponsored programs office for sub-contracting with other NC-1030 institutions.

Funding options. We discussed options for funding data collection for NC 1030. No decisions were made, but the following are some options

1) NRI and NSF grant applications - 2 proposals were submitted.

2) A different NSF proposal -- in process at Purdue.

3) Use existing Family and Business data from 1997 NFBS and 2000 panel data together with 97, 98 SHELDUS disaster data (or other public data), and conduct re-interview in 2007 with our $5,500 project balance.

4) Collect funds by station.

5) Combination of the above options.

Miscellaneous. Greetings from Jan McCullogh, Dept. Chair of Family Social Science, and Marilyn DeLong, Associate Dean for Research, College of Human Ecology, and soon to be the Associate Dean for Research and Outreach, College of Design. We received an update on the transition for various CHE departments into other colleges.

Homework. A list of homework assignments, with due dates, was generated.

Next meeting. University of Minnesota, October, 8-10 2006 (Columbus Day weekend)

Sunday: Noon to 5, evening meal together

Monday, 8 to 5, working evening small group meetings

Tuesday, 8 to 12, depart afternoon.

Accomplishments

Accomplishments can be grouped into three categories: 1) specific data collection and analysis, 2) the development and testing of a conceptual framework and the influence of this work on the overall literature on family firms, and 3) the presentation of findings and implications through publications and presentations. 1. Accomplishments in the areas of data collection and analyses include the following: <ul> <li>In 1997, the NE-167 Family Business Research Group (FBRG) collected nationally representative data on family firms. This kind of data was previously nonexistent. <li>FBRG then developed the first panel data set on family firms through reinterviews in 2000. This longitudinal data has enabled researchers to identify for the first time, changes that family firms experience over time, which in turn increases understanding of the dynamics of business demise and manager departure. <li>While sample attrition between 1997 and 2000 affected the representativeness of the sample, this effect can be corrected by including measure of stability, such as age of the business manager and marital status. <li>Success of the family firm, measured both objectively and subjectively, is a function of continuity. Continuity, in turn, is affected by the age of the business manager and marital status. <li>Longitudinal data has increased support for the notion that business closure is not synonymous with failure. Some closures may be the result of failure, but others should be viewed as ordinary business or family developments, such as retirement, a health-related change, or a desire to do something different. Successful businesses are sold or gifted when the owner-manager leaves the business. <li>A socio-economic vulnerability scale (SEV) which incorporates the effects on business success of the external environment in which the firm operates, was developed. This scale consists of 18 measures of a county's social and economic vulnerability.</ul> 2. Accomplishments in the development and testing of a theoretical framework include the following: <ul> <li>The NE-167 FBRG has developed and tested a theoretical framework, the Sustainable Family Business (SFB) Model which illustrates the interface between the family and the business. The model has been used extensively and has been expanded to include the community. <li>Once the exclusive domain of business schools, the study of family business has expanded because of the interdisciplinary nature of NE-167 research team. </ul> 3. Additional accomplishments resulting from the publication and presentation of findings and implications include the following: <ul> <li>The marital relationship of family business-owing couples is affected by business tensions and spousal involvement in decision making in the business. <li>Decreased tensions by both spouses are observed when the husband prioritizes family over business, when the family system is marked by a high level of functional integrity, and when the wife is satisfied with her role in the business. <li>Family business owners with a succession plan tend to be older, work longer hours in the business, have fewer children, and have higher business management scores than those without a succession plan.

Publications

Objective 1: Interaction family & business in vulnerable & non-vulnerable communities Amarapurkar, S.S., & Danes, S.M. (2005). Farm business-owning couples: Interrelationships among business tensions, relationship conflict quality, and satisfaction with spouse. Journal of Family and Economic Issues, 26(3), 419-441. Danes, S.M. (in press). Tensions within Family Business-owning Couples Over Time. Stress, Trauma & Crisis. Danes, S.M., & Haberman, H. R. (2005). Gendered discourse about family business. Family Relations, 54,116-130. Danes, S.M., & Morgan, E.A. (2004). Family business-owning couples: An EFT view into their unique conflict culture. Contemporary Family Therapy, 26(3), 241-260. Danes, S.M., & Lee, Y.G. (2004). Tensions generated by business issues in farm business-owning couples. Family Relations, 53, 357-366. Haynes, G. W., & Muske, G. (2004). Business and family income: Resource intermingling and financial success. In R. K. Z. Heck, A. N. Puryear, & P. A Tombline, (Eds). A Toolkit for Home-based Entrepreneurs (pp. 78-90). NY: Baruch College Lawrence N. Field Center for Entrepreneurship and Small Business. Heck, R. K. Z, Danes, S. M., Fitzgerald, M.A., Haynes, G. W., Jasper, C. W., Schrank, H., and Stafford, K. Role of Family in Family Business Entrepreneurship. In Poutziouris, P.Z., Smyrnius, K.X. and Klein, S. (Eds.) (2006, in press). Part B - Conceptual Frameworks and Theoretical Issues, Family Business Research Handbook. London: Edward Elgar Publishing Company. Heck, R. K. Z., Danes, S. M., Fitzgerald, M. A., Haynes, G. W., Jasper, C. R., Schrank, H. L., Stafford, K., & Winter, M. The family's dynamic role within family business entrepreneurship. In Poutziouris, P.Z., Smyrnius, K.X. and Klein, S. (Eds.) (2006, in press). Family Business Research Handbook. London: Edward Elgar Publishing Company. Hsu, P., Masuo, D., Fong, G., and Yanagida, J. (2006, April). Characteristics of home-based family businesses: A comparison between Hawaii and the United States. Poster presented at the Hawaii Association for Family and Consumer Sciences meeting, Honolulu, Hawaii. Jasper, C.R., Goebel, K.P., & Lee, Y. (2003). Business issues: Identification & retirement planning/ strategies succession. In R.K.Z. Heck, A.N. Puryear, & P.A. Tombline, (Eds.). A Toolkit for Home-Based Entrepreneurs (pp. 140-151). NY, NY: Baruch College, Lawrence N. Field Center of Entrepreneurship and Small Business. Lee, Y.G. Danes, S.M., & Shelley, M. C. II. (in press). Work roles, management and perceived well-being for married women within family businesses. Journal of Family and Economic Issues. Lee, Y.G., Jasper, C.R., & Goebel, K. (2003). A profile of succession planning among family business owners. Journal of Financial Counseling and Planning. 14, (2), 1-12. McCann, G., Hammond, C., Keyt, A. Schrank, H., & Fujiuchi, K. (2004). A view from afar: Rethinking the director's role in university-based family business programs. Family Business Review, 17(3), 203-217. Muske, G. & Fitzgerald, M. A. (in press). A panel study of copreneurs in business: Who enters, continues and exits? Family Business Review. Niehm, L.S. & Miller, N.J. (2006, in press). Entrepreneurship and the impact of managerial role on family business success. Journal of Marketing and Entrepreneurship, 7(2). Niehm, L.S. & Miller, N.J. (2006). The impact of managerial role on family business success: A longitudinal perspective. In Proceedings of the USASBE (United State Association for Small Business and Entrepreneurship) Annual Meeting, Tucson, AZ. Paul, J., Winter, M., Miller, N. J., & Fitzgerald, M. A. (2003). Cross-institutional norms for timing and sequencing and use of adjustment strategies in families affiliated with family-owned business. Marriage and Family Review, 35, 167-191. Philbrick, C. A. & Fitzgerald, M. A. Women in business-owning families: A comparison of roles, responsibilities and predictors of family functionality. Manuscript under review. Winter, M., Danes, S.M., Koh, S., Fredericks, K., & Paul, J. (2004). Tracking family businesses and their owners over time: Panel attrition, manager departure, and business demise. Journal of Business Venturing, 19, 535-559. Yilmazer, T. & Schrank, H. (in press). Financial intermingling in small family businesses. Journal of Business Venturing. Zody, Z., Sprenkle, MacDermid & Schrank. (in press). Drawing the line: Do boundaries affect the functioning performance of the family and business systems? Journal of Family Economic Issues. Objective 2: Effects of community structure & characteristics on families and businesses Fitzgerald, M. A., Muske, G., & Philbrick, C. (2004). Business satisfactions: Relationships in the work environment. In R. K. Z. Heck, A. N. Puryear, & P. A Tombline, (Eds). A Toolkit for Home-based Entrepreneurs (pp. 101-112). NY: Baruch College Lawrence N. Field Center for Entrepreneurship and Small Business. Haynes, G.W. & Ou, C. (2005, January). Finance companies and small business borrowers. United States Association of Small Business and Entrepreneurship/SBIDA Conference, Indian Wells, CA. Haynes, G. W., & Muske, G. (2004). Business and family income: Resource intermingling and financial success. In R. K. Z. Heck, A. N. Puryear, & P. A Tombline, (Eds). A Toolkit for Home-based Entrepreneurs (pp. 78-90). NY: Baruch College Lawrence N. Field Center for Entrepreneurship and Small Business. Muske, G., Fitzgerald, M. A., & Kollmorgen, N. (2004). How business management practices affect business success and the family. In R. K. Z. Heck, A. N. Puryear, & P. A Tombline, (Eds). A Toolkit for Home-based Entrepreneurs (pp. 125-135). NY: Baruch College Lawrence N. Field Center for Entrepreneurship and Small Business. Ou, C. & Haynes, G.W. (in press). Uses of equity capital by small firms, findings from the NSSBF. Small Business Economics. Objectives 1 & 2: Danes, S.M., & Lee, Y.G. (2004). Tensions generated by business issues in farm business-owning couples. Family Relations, 53, 357-366. Haynes, G., Muske, G., Fitzgerald, M., Fong, G., & Douglas, S. (2004). Developing a county-level socio-economic scale. 2004 Community Development Society Proceedings. Haynes, G., Muske, G., & Fitzgerald, M. A. (July, 2004). Developing a socio-economic scale. Community Development Society Conference, Cleveland, OH. Lee, Y.G., Jasper, C.R., & Goebel, K. (2003). A Profile of Succession Planning: Among Family Business Owners. Journal of Financial Counseling and Planning, 14, (2), 1-12. Objective 3: Economic & social contributions of family businesses to communities over time Danes, S.M., Loy, J. T., & Stafford, K. (2006, April). Family business success: Differences in female- and male-owned businesses. Manuscript accepted for presentation at the Family Enterprise Research Conference in Niagra Falls, Canada. Fitzgerald, M.A., Haynes, G.W., Schrank, H., & Danes, S.M. (2005, September). For-profit family businesses as socially responsible organizations: Evidence from the U. S. National Family Business Survey. Proceedings of the International Family Enterprise Association/Family Business Network Research Meeting (on CD), Brussels, Belgium, 1-19. Haynes, G.W. & Onochie, J.O. (2005, January). Is what's good for the business, good for the family: A financial assessment. In Exploring the family-business intersection with panel data: Past, present and future. United States Association of Small Business and Entrepreneurship/ SBIDA Conference, Indian Wells, CA. Haynes, G.W. & Ou, C. (2006, January). How did households owning small businesses fare during the largest ever peacetime expansion in the U.S. economy. United States Association of Small Business and Entrepreneurship/SBIDA Conference, Tucson, AZ. Niehm, L.S., Swinney, J., & Miller, N.J. (requested to revise and resubmit). The impact of socially responsible business strategies on family business success. Journal of Small Business Management.

Impact Statements

Conclusions that impact families, their businesses, their communities and their support networks include the following: <ul> <li>When family and business are managed by different individuals in a household, tensions arise between family members regarding these roles and the use of household and business resources. <li>Tensions in the family business can be reduced by encouraging increased commitment to the family on the part of the business manager, increased satisfaction by the household manager in her role in the business, and strengthening the functional integrity of the family. </ul>
Implications of the findings that can lead to success for business-owning families include: <ul> <li>There are risks to using family funds to operate a family business. Those risks can be reduced by using fewer owner resources and utilizing financial bootstrapping strategies used by non-family owned businesses to run the firm. <li>Only about one-half of new business start-ups will survive after five years. For family businesses, the survival rate can be increased when manager-owners are male and older, and they perceive their businesses as being successful, and when the business is home-based. </ul>
The direct use of findings in educational programming include: <ul> <li>Research instruments and findings have been translated into tools that family firms can use to assess the well being of families and their businesses, as well as the interactions thereof. <li>These tools have been used in 10 states and with approximately 530 university students in family business courses and 50 businesses by extension educators, consultants, academicians, and business-owning family members to generate discussion of issues, solutions and planning that will shape the future of the family business. </ul>