Family firms, do they grow slower than non-family firms?

Abstract

This study seeks to answer whether family firms grow slower than non-family firms in Norway, and if family firm’s inherent characteristics explains differing growth. Our research analyses four different measurements of growth: Sales, Operating income, Total assets and Wage. Out of 12 industries, we find that family firms grow slower in 6 industries, but quicker in 2 industries. Our tests show that none of the following explains the differing growth: risk aversion, lack of business planning or family ties over professionalism. Lastly, we also discuss possible reasons for different growth scenarios across industries.