FAMILY-OWNED BUSINESSES: AN ASSESSMENT OF THE VARIOUS LEADERSHIP STYLES AND ITS INFLUENCE ON MANAGEMENT DECISION-MAKING

Abstract

Abstract
Family-owned businesses are usually associated with a low rate of survival. Statistically, less than three in ten will survive the first 50 years. However, statistics show that around 65% of all business enterprises are family-owned, and in a country with an unemployment rate as high as ours, building enterprises for future generations is critical. The literature acknowledges that management leadership styles play an important role within family-owned businesses in terms of decision making. The research consists of quantitative analysis conducted on a family-owned business in Kwa-Zulu Natal, South Africa. The target population selected for this study consisted of forty two employees. Respondents were surveyed using a forced-choice questionnaire. Findings revealed that the laissez faire and democratic leadership styles seem to be predominant at the organisation. However, there is still a need for more transformational leaders within the organisation, in an attempt to enhance the motivation, morale, and performance of employees. Leaders should create an environment of team spirit as people work more effectively when they feel acknowledged as part of a team. Failure to do so could hamper the growth of the family business.