2024 Newsletter 2
Double-Edged Sword: Love & Business in the copreneurial World
by Alejandra Armesto | Graduate Research Assistant | Purdue Institute for Family Business
Embarking on a business journey with your significant other is a unique and thrilling venture. It is a blend of shared vision, mutual encouragement, and the opportunity to build something meaningful together. However, this journey is not without its challenges. It is like walking a fine line, requiring a delicate balance, consistent communication, and a profound understanding of the complex dynamics of personal and professional relationships. This is especially true when navigating the intricate power dynamics inherent in copreneurial couples.
While existing research has not conclusively demonstrated that copreneurial couples achieve higher profits or greater satisfaction simply by working together, recent studies shed new light on the subtle interplay between love and business (El Shoubaki et al., 2022; Lee & Marshall, 2013; Li & Marshall, 2019; McDonald et al., 2017). Analyzing data from the Small Business Survey (Wiatt et al., 2021), this study delves into the specific factors that shape the experiences of copreneurial couples, offering valuable insights into both the rewards and challenges they encounter.
One of this study's most significant findings is that there is no inherent formula for success merely by being a business couple. Instead, success hinges on several critical elements that are essential for a thriving copreneurial partnership. Among these, open communication stands out as a cornerstone. Couples who prioritize joint decision-making, foster transparency, and actively engage in addressing disagreements are more likely to build successful businesses and maintain healthy relationships.
Moreover, the research highlights the vital role of work-life balance, emphasizing that the line between personal and professional life can often blur for copreneurs. Proactively managing this balance, along with the timely resolution of conflicts, emerges as a key factor in sustaining both the business and the relationship. When partners feel genuinely heard and respected—whether in the boardroom or around the breakfast table—their business is more likely to thrive. This focus on proactive conflict resolution equips copreneurs with the tools to handle potential challenges before they escalate.
However, this study also reveals potential pitfalls that undermine a copreneurial venture. For instance, a significant wage gap between partners can negatively impact overall business income and, by extension, the health of the partnership. This finding underscores the importance of maintaining open, honest dialogues about compensation and fostering a strong commitment to fairness and equity within the business relationship. Addressing these issues head-on can help reinforce the stability and resilience of the business and the personal relationship.
Ultimately, the journey of a copreneurial couple is complex, requiring careful navigation of both the personal and professional dimensions of life. By developing a deep understanding of power dynamics, embracing open and honest communication, and diligently nurturing both their business and their relationship, copreneurial couples can build a strong foundation for enduring success. The path may be fraught with challenges, but with the right approach, the rewards can be immensely fulfilling—both in business and in love.
References:
El Shoubaki, A., Block, J., & Lasch, F. (2022). The couple business as a unique form of business: A review of the empirical evidence. Management Review Quarterly, 72(1), 115-147. https://doi.org/10.1007/s11301-020-00206-5
Lee, Y. G., & Marshall, M. I. (2013). Goal Orientation and Performance of Family Businesses. Journal of Family and Economic Issues, 34(3), 265-274. https://doi.org/10.1007/s10834-012-9329-9
Li, W., & Marshall, M. I. (2019). Gender and business owner satisfaction: The case of farm and non-farm family businesses in the Midwest. Journal of Family Business Management, 9(4), 416-428. https://doi.org/10.1108/JFBM-12-2018-0059
McDonald, T. M., Marshall, M. I., & Delgado, M. S. (2017). Is Working with Your Spouse Good for Business? The Effect of Working with Your Spouse on Profit for Rural Businesses. Journal of Family and Economic Issues, 38(4), 477-493. https://doi.org/10.1007/s10834-017-9525-8
Wiatt, R. D., Lee, Y. G., Marshall, M. I., & Zuiker, V. S. (2021). The Effect of Cash Flow Problems and Resource Intermingling on Small Business Recovery and Resilience After a Natural Disaster. Journal of Family and Economic Issues, 42(1), 203-214. https://doi.org/10.1007/s10834-020-09710-y
Suggested citation:
Armesto, A. (2024, December 11). Double-Edged Sword: Love & Business in the Copreneurial World. Purdue Institute for Family Business 2024 Newsletter, (2). https://ag.purdue.edu/department/agecon/fambiz/_docs/newsletters/2024newsletter2_doubleedge.html
Published: December 2024