Goals for family businesses are very important and are related to actual performance. Strategic management begins when business owners set goals. Goals motivate and keep business owners focused on relevant performance activities. Goals help owners to “stick with it” when things become challenging (Lee & Marshall, 2013). Goals can effect business performance as they impact the owners’ direction, energy, persistence, and desire to seek more knowledge.

What are the goals of family businesses? As women take on increased management roles in small businesses does this alter the primary goals of the business?  While business performance is generally evaluated in monetary terms, money is certainly not the primary goal of all businesses. Family businesses, in particular, are likely to have other goals

(Dunn, 1995; Fitzgerald & Muske, 2002; Chrisman et al., 2003). In this article, we explore the primary business goals of farms and other small businesses in Illinois, Indiana, Michigan, and Ohio. We also explored whether the goals of the primary owner are different for women, men, or couples.

 

Goals by Gender and by Couples/Singles

 

We first consider how goals are different between male owners and female owners. Past studies have shown that women generally emphasize social goals, while men focus on economic goals (Holmquist & Sundin, 1989; Brush, 1992). We also evaluate goal differences between copreneur couples (couples working together, both in management), non-copreneur couples (couples with only one involved in management), and single individuals. Copreneurs are considered to have different goals than non-copreneurs, and past literature suggests that they are looking for a particular way of life in their business, rather than profit maximization as a primary goal (Chell & Baines, 1998; Fitzgerald & Muske, 2002; Muske & Fitzgerald, 2006).

For our evaluation, data was collected in the 2010 Intergenerational Farm and Non-Farm Family Business Survey which involved a 30 minute telephone survey of rural family businesses.

 

There were 2,097 small and medium sized farms from Illinois, Indiana, Michigan, and Ohio surveyed, as well as a random sample of 1,059 small Indiana businesses with farm sampling having 641 complete responses and the non-farm 80 complete responses. The overall response rate was 34%, with the farm sample at 44% and the non-farm Indiana sample at 12%.

 

Survey respondents were asked to select from these 5 primary goals:

1. Maximizing the profit of the business.
2. Generating a positive reputation with customers
3. Ensuring the survival of the business.
4. Keeping the business in the family.
5. Creating the opportunity to work with family.

 

With regard to gender, there were 427 male respondents (59%) and 294 female respondents (41%). Survey results confirm that men and women have different primary goals as managers, but not as great as one might expect from mass media and general culture. Figure 1 shows the goals of male business owners while Figure 2 shows the goals of female business owners.

Women are more likely to choose positive reputation with customers as a primary business goal (44% compared with 38% for male owners). Men are more likely to choose profit as their primary business goal (23% compared with 20% for female owners). This seems to concur with popular media, culture, and some of the research literature as it suggests that men are somewhat more focused on monetary goals, while women are more focused on social goals. Men are also more likely to choose the goal of keeping the business in the family (11% compared with 9% for female owners). While there are some gender differences, it is worth noting that there is still a great deal of similarity of goals between genders. Finally, the goal of having the opportunity to work with family and the goal of ensuring the survival of the business had nearly identical results.

 

 

 

In addition to the goals, we also asked about the perceived success in achieving these goals with results in Figure 3. These indicate little difference between how male and female business owners perceive their success. The majority of males and females believe they were either “somewhat successful” or “very successful” in achieving their primary stated goal. Further, it suggests that, regardless of gender, these small business owners believe that they are successful in goal achievement. We next consider copreneurs (couples working together, both in management), compared with non-copreneur couples (couples with only one involved in management) and single individuals (those who responded to the survey as  not presently married). In the sample there are 484 copreneur respondents (66%), 215 non-copreneur respondents (29%), and 37 single respondents (5%). The goals of the three groups are compared in Figure 4 where we see some differences. Copreneurs, are more likely to choose a positive reputation with consumers as a primary goal (43% compared with 32% for single individuals and 35% for non-copreneurs). The opportunity to work with family was more important for copreneur couples (13% compared with 8% and 9% respectively for individuals and non-copreneurs).

 

 

 

Conversely, copreneurs had a weaker tendency to have the primary goal of maximizing profits (19% compared to 27% for both non-copreneurs and single individuals). Similar to findings in past literature, copreneurs tend to have other goals beyond maximizing profits, while more traditional managers may be more focused primarily on generating profit. Survival of the business is more important to non-copreneurs and single individuals (18% and 22%, respectively), than to copreneurs (15%), which again suggests that the goals of copreneurs may be different than those expected traditionally in business. Finally, the goal of keeping the business in the family, is approximately the same for all three groups.

 

We also consider the perceived achievement of these primary goals. Figure 5 shows the perceived achievement of their primary goal and all groups tended to feel very successful or somewhat successful. It is worth noting, however, that copreneurs couples are more likely to perceive themselves as “very successful” than non-copreneur couples and single individuals.

 

 

Identifying Midwestern Small Business Goals

 

Setting goals is an important step in successful strategic business management. The setting of goals tends to have a positive impact on the actual business performance. This article reports on goals of small Midwestern rural businesses that includes farms and non-farm businesses. Evaluation of goals is examined between female and male business owners, as well as copreneurs, non-copreneurs, and single individuals. The differences in goals between men and women are relatively minor particularly when compared with the copreneurs and non-copreneurs. Differences in the latter group are much larger, with non-copreneurs bearing a greater resemblance to single individuals, than to copreneurs. Further, all groups believe that they are generally successful in achieving their primary goal.

 

Although these results do not tell us everything that we might want to know about differences between these management groups, particularly in terms of management style or ultimate outcomes, it does suggest that different management types have different initial goals. Acknowledgement of these varied goals, and perceived successes, could be beneficial in making suggestions for management techniques to various small family businesses. Small businesses should be encouraged to establish goals and to develop and implement a business plan to work strategically toward achievement of their objectives.

 

References:

 

Brush, C.G., (1992). “Research on Women Business Owners: Past Trends, a New Perspective, and Future Directions”, Entrepreneurship Theory and Practice 16 (2): 5 – 30.

 

Chell, E., and S. Baines, (1998). “Does gender affect business ‘performance’? A study of microbusinesses in business services in the UK”, Entrepreneurship and Regional Development 10: 117-135.

 

Chrisman, J.J., J.H. Chua, R. Litz, (2003). “A Unified Systems Perspective of Family Firm Performance: An Extension and Integration”, Journal of Business Venturing 18: 467 – 472.

 

Dunn, B., (1995). “Success Themes in Scottish Family Enterprises: Philosophies and Practices  through the Generations”, Family Business Review (8) 1: 17 – 28.

 

Fitzgerald, M.A., and G. Muske, (2002). “Copreneurs: An Exploration and Comparison to Other Family Businesses”, Family Business Review XV (1): 1 – 16.

 

Holmquist C., and E. Sundin, (1989). “The Growth of Women’s Entrepreneurship: Push or Pull Factors”, Presented to EIASM Conference on Small Business. University of Dunham Business School.

 

Muske, G., and M.A. Fitzgerald, (2006). “A Panel Study of Copreneurs in Business: Who Enters, Continues, and Exits?” Family Business Review XIX (3): 193.