Document Type Master's Dissertation Author Moodley, Sugenthiran URN etd-03312010-125459 Document Title Major factors contributing to the sustainable profitability of South African Indian family businesses Degree MBA Department Gordon Institute of Business Science Supervisor
Advisor Name Title Mr G Fisher Supervisor Keywords
- family owned business enterprises
Date 2007-04-08 Availability unrestricted Abstract
Indians arrived in South Africa since 1860 predominantly as indentured labourers. Despite over a century of pointed hostility towards Indian entrepreneurs, they managed to endure hardship and thrive. Today they run some of the most successful family businesses in South Africa. Family businesses internationally have had a reputation of struggling to survive beyond the first generation.
This study attempted to identify factors that contributed to family business survival. Of the factors identified, which of these factors were adopted to a significantly greater extent by highly profitable family businesses as compared to family businesses exhibiting average profitability.
Two family business groups were studied. A control group and a success group. Both groups were profitable companies; however the success group had a higher profitability for the past five years as compared to the control group.
Thirteen factors were identified as key contributors to family business longevity. All thirteen factors were adopted by 45% of the Indian businesses. Of these eight factors: strategic planning, governance structures, succession planning , open family communication, family networks, trust, cultural values alignment and harmonious family relations were proved to be adopted to a significantly higher extent by the highly profitable companies.
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Please cite as follows:
Moodley, S 2006, Major factors contributing to the sustainable profitability of South African Indian family businesses, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03312010-125459/ >
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