Family values, social capital and sustainability of family-owned businesses in Uganda: a case of Kampala District

Abstract

The purpose of this study was to examine the relationship between family values and sustainability of family-owned businesses, social capital and sustainability of family-owned business, the extent of application of social capital and family values in family-owned businesses in Uganda and the extent of family-owned business sustainability in Uganda. The study was guided by four objectives; To establish the relationship of family values and sustainability of family-owned businesses, to establish the relationship of social capital and sustainability of family-owned businesses, to establish the extent of application of family values and social capital in family-owned businesses and to establish the extent of sustainability of family-owned businesses in Uganda. A descriptive and correlational research design using quantitative approach was used; sampling was carried out to select 255 respondents from the FOBs. A structured questionnaire was used to collect data and analysis was done using the Statistical Package for Social Science (SPSS) version 23. The findings of the study indicate that family values and social capital aspects are highly applied in FOB in Kampala district as revealed by the mean of (3.583, SD=0.622) for family values, and a high mean of mean of (3.407, SD=0.545) for social capital and in addition the results revealed that FOBs in Kampala have a highly sustainability indicated by the mean of (3.601, SD=o0.5909). In the regression analysis, the finding revealed that family values (B=0.532, P=0.000), social capital (B=0.273, p=0.000), informal networks (B=0.394, p=0.00), stewardship (B=0.289, p=0.000), relationships (B=0.234,p=0.002) and formal networks (B=0.185,p=0.001).The findings of the study further show that there is a significant positive relationship between family values and sustainability of FOBs in Kampala district (r=.685**, p≤.01), meaning that any positive change in family values is associated with a positive change in the sustainability of FOBs in Kampala district. Additionally, the study findings show that there is a significant positive relationship between social capital and sustainability of FOBs (r=.565**, p≤.01). This means that any positive change in social capital is associated with a positive change in the sustainability of family-owned businesses in Uganda. The findings further show that the common challenges of family business sustainability in Uganda majorly arise from the failure to uphold stewardship as a value especially the area of succession planning and the family relationships. The findings imply that once businesses apply social capital and family values; they will attain sustainability.