ABSTRACT
Despite the fact that the small family firm is the predominant form of business organisation, the small family business sector has received sporadic attention from academics and policy-makers. This chapter aims to highlight the financial agenda underlying the development of smaller family companies. Following a brief introduction concerning the definition and role of the family business, the debate on the finance gap restraining the survival and long-term growth and prosperity of smaller privately held companies (including the prolific family business) is briefly reviewed. Evidence is drawn from a database of 150 smaller family business owner-managing directors (OMDs), in order to establish their views and experiences about venture capital (VC) financing and other capital options (such as employee share ownership schemes – ESOPS and flotation). In conclusion, some tentative policy implications from the perspective of ownermanagers, service providers (financiers and advisors) and policy-makers, are discussed.
