Attitudes towards private equity amongst SMEs: Does family matter?

Abstract

This paper presents the findings on whether attitudes towards using outside (non-family) private equity (PE) differ between small-to-medium-sized family and non-family firms whilst controlling for other influences. Based on multiple linear regression analysis on survey data collected from 328 Australian SMEs, being a „family business‟ had no significant influence on attitudes towards using PE when controlling for other influences. Rather, the intended succession strategy and knowledge of PE were found to have a significant positive influence over the use of PE. Conversely, lifestyle objectives were found to have a significant negative influence on use of PE amongst SMEs. The implications of the findings for family businesses, policy makers and future research are explored in the paper.