Family dynamics in a small consultancy firm: A case study

Family-run enterprises are noted contributors to the small business population, particularly in terms of job creation and wealth generation. Moreover, it is well established that the presence of the family can be an important influence upon social relations in small firms. This paper examines whether family dynamics impinge upon the management of small consultancy firms, a sector that is closely associated with a discourse of 'knowledge', 'expertise', and 'competence'. Based on a year-long case study of WhitCo, a husband and wife-owned small consultancy business, three questions are investigated. What is the nature of the family role in the consultancy business? How do employees in such settings view the family? What tactics do these usually credentialized workers deploy to handle family relations? The findings demonstrate that household relations rather than the activity of an 'entrepreneurial individual' are important in understanding the operation of the small business; moreover, there is a tendency to underplay the role of the female partner in the initiation and maintenance of the firm. Employees value aspects of the 'familyness' of the enterprise; for example, paternal approaches to social relations can generate feelings of inclusiveness. However, employees can perceive family roles as lacking in legitimacy if they are not underpinned by 'competence'. Finally, employees' capacity to handle family relations is contingent upon their material importance to the firm.