Sustainability of Rural Family Enterprises

Family enterprises have been researched in traditional, stable market economies, to a lesser extent also in former socialist economies. A special focus has been on family enterprises’ sustainability and it has been discovered that one of the main pain spots is the change of generation related problems. Family enterprises can be sustainable only when they are prepared for a generation change. Family business culture and family traditions in Estonia have been broken. After Estonia regained independence in 1991, entrepreneurs started to restore previous farms and wished to continue family traditions of their ancestors; entrepreneurship started to develop and many people, especially in rural areas, started a family business. In 2012, these family entrepreneurs have a choice to make how to ensure that their family business will stay sustainable, how to pass family business over to their descendants so that the family business traditions won’t cease. This paper seeks to analyse factors that inhibit sustainability of family enterprises. The data sources are special scientific literature and the questionnaire surveys and interviews with family entrepreneurs conducted by the author over 2007−2011. It is possible to ensure that a family enterprise is sustainable only when the family entrepreneurs are prepared for the generation change. The present and future family entrepreneurs in Estonia can get information from this paper about the problems that may arise in connection with the generation change and knowledge to ensure sustainability of their family business

Family and non-family business differences in Estonia

This paper seeks to identify differences between family enterprises and non-family enterprises. The concepts of entrepreneurship, entrepreneur and enterprise/business are clarified. The paper contains the results of research conducted by the author among family entrepreneurs in 2007–2012 that can be compared to the research results reached by Wahl (2011). This research demonstrates that there are differences between family entrepreneurs and non-family entrepreneurs, which are primarily caused by that family entrepreneurs value first of all their family members, family traditions and only then profit earning

Rural Entrepreneurship Policy in Estonia

This article seeks to provide an overview of the entrepreneurship policies targeted at rural areas and family undertakings. Agricultural undertakings, especially cattle breeders, have been almost ignored in the development of Estonia’s entrepreneurship policies. Various action plans have been devised for the development of rural living environments. Unfortunately none of them supports cattle breeding. The author obtained the data used in this research from the databases of Estonian Animal Recording Centre, Estonian Agricultural Register and from questionnaires. The author conducted interviews with beef cattle breeders doing performance testing and with parish authorities. Family enterprises are extremely vulnerable; their reserves for surviving critical periods are small or nearly nonexistent. They often depend only on one area of activity. In the current economic situation owners of family enterprises need to pay particular attention to strategic management, so as to survive in difficult situations. They must take right decisions and start looking for challenges

Women in family enterprises in Estonia

This article objective is to give an overview of the women in family enterprises on the basis of theoretical sources and approaches. In order to achieve this goal, an overview of the research findings have been provided, which have analyzed a woman's role in the family business. Family firms and family entrepreneurs have been defined differently by different authors, but what all definitions have in common is the family is involvement in business activities. A family entrepreneur can be both an individual whose entrepreneurial activities involve family members and a company, which was founded by family members. In family entrepreneurships, the members have trust towards each other and they communicate frequently, which will help them to achieve a common goal. The studies reflect predominantly men as family entrepreneurs in whose business activity the family members, including wife and children participate. The European Union has not yet provided a coherent definition of the family business, while increasing the role of women in family businesses in ensuring gender equality and giving importance to the role of the woman as the family entrepreneu

Strategies for Estonian rural family enterprises. Eesti maapiirkonna pereettevõtete strateegia

The paper seeks to analyse family businesses in rural areas, family business strategies and re-registration of sole proprietors with the Centre of Registers and Information Systems (hereinafter Commercial Register) in 2009, and to provide an overview of entrepreneurship policies targeted at Estonian rural businesses. Layoffs have increased the number of unemployed; some of those who have lost employment opt for social assistance benefits, but some others decide to become entrepreneurs. Many enterprising people in Estonia have set up a family enterprise, mainly in the sphere of services, agriculture and tourism. The Estonian entrepreneurship policy supports enterprising people and approves of entrepreneurship as a promoter of national economic development. One of the most positive qualities of family enterprises is their short decision-making chain, which ensures rapid implementation of the strategy

The role of family business in Estonian economy. Pereettevõtte rollist Eesti majanduses

Family businesses have a remarkable role in the world economy; their role in economies has been investigated by many researchers. This paper seeks to study the findings of research conducted over 2008…2011 in Estonia in the field of family businesses and family business entrepreneurs. This research attempts to define development and sustainability of family businesses in Estonian economy. After Estonia regained independence in 1991, private entrepreneurship started to develop, and many people, particularly in rural areas, set up a family enterprise. After Estonia’s accession to the European Union in 2004, family business activity boosted further still. Until 2007, family business activity was rather domestic market focused; after Estonia was acceded to the Schengen visa area, they started to successfully sell products and services outside Estonia. The research findings can be used either for diversifying economic activity of family businesses or for investment support or in other areas. This research definitely benefits to all enterprising people who wish to become a family business entrepreneur and who wish to set up a strong and sustainable family busines

Rural Entrepreneurship Policy in Estonia

This article seeks to provide an overview of the entrepreneurship policies targeted at rural areas and family undertakings. Agricultural undertakings, especially cattle breeders, have been almost ignored in the development of Estonia’s entrepreneurship policies. Various action plans have been devised for the development of rural living environments. Unfortunately none of them supports cattle breeding. The author obtained the data used in this research from the databases of Estonian Animal Recording Centre, Estonian Agricultural Register and from questionnaires. The author conducted interviews with beef cattle breeders doing performance testing and with parish authorities. Family enterprises are extremely vulnerable; their reserves for surviving critical periods are small or nearly nonexistent. They often depend only on one area of activity. In the current economic situation owners of family enterprises need to pay particular attention to strategic management, so as to survive in difficult situations. They must take right decisions and start looking for challenges