Building Sustainable Family Business Programs
• Andrew Keyt, Loyola University• Carol Wittmeyer, St. Bonaventure University• Joseph Astrachan, Kennesaw State University
GoalsTo provide: I. Background on family business centers
including survey resultsII. Framework to analyze sustainability of family
business centers from a capitalization perspective
III. Suggestions to create, maintain or enhance sustainability
IV. Professional Development suggestions
I - Background
• New and fledging discipline– Multidisciplinary
• Complexity of stakeholders with various goals
II – Sustainability Framework1. Political Capital2. Social Capital3. Intellectual Capital4. Financial Capital
1. Political CapitalExternal• Members• Sponsors• Advisors• Boards• Alumni
Internal and Structural • University
Administration• Faculty
Debate: does being a part of a specific school (eg business) hurt or help?
Political Capital Cont’d
Organizational structure:• 64% in business school• 18% not in bus school• 18% separate 501c3
2. Social Capital• Goodwill – stakeholder satisfaction• Brand & Communications – internal and
external center awareness; frequency and relevancy of communications
• Staff - capability, dedication, charisma, synergy and continuity
• Networks – affinity groups internally and externally
3. Intellectual Capital
• Knowledge – thought leadership– Programming – relevant programming
• Niche – particular expertise• Research – future thought leadership
4. Financial Capital
• Sources – where do funds come from and what power influences accompany them?
• Control – what expectations come from funding sources?
• Uses – how are financial resources used to invest in the center?
Survey - RevenuesDues:• Average $2,145• Range $385-$6,950Budget:• Average budget: $250K• Range: $57K - $800KEndowment:• Average: $800K• Range: $0-$3.5M
Current Revenue Sources:• Dues – 50%• Sponsors – 33%• Events – 10%• Endowment Grants &
Fundraising – 3%• University – 2%• Other – 2%
More on Revenue Sources
Grants:• 4 received grants
ranging from $1K to $300K– 3 were from private
sources
Events held:• 13 per year on average– Range 4-35
• Only 11% covered by event fees
III – Building Sustainability1. Political Capital2. Social Capital3. Intellectual Capital4. Financial Capital
1. Building Political Capital
• Internal Support – build collaborations:– Supervisors– Colleagues• Center, other divisions
– Faculty• Business school• Other disciplines
– Students
Building Political CapitalInternalStaffing – is the center one person?What options do you have?• Full-time vs. part-time• Joint appointments w/ other departments• Visiting appointments• Executive-in-Residence
Staffing Survey Results • Full-time staff 2– Range 0 – 7
• PT staff 1– Range 0-4
• Student workers 1– Range 0-4
• Contractors 3– Range 0-9
• Full-time faculty 1– Range 0-12
• Part-time faculty 1– Range 0-4
• Director Tenure – 9 yrs– Range 1-17
• Total # directors – 1– Range 1 – 4
• Average members 59– Range 22-125
Building Political Capital• External Support – build collaborations:– Board– Members– Alumni/Volunteers– Sponsors/Donors– Other Centers/Orgs– Media– Networking Groups– Funders
Board Survey ResultsBoard of Advisors:• 92% have one• 12 members on average– 70% have family members– 65% have sponsors– 57% have administrators– 30% have faculty– 13% have nonsponsor advisors
2. Building Social Capital
Building the right relationships & building the center reputation around thought leadership.
• Networking• Communications
3. Building Intellectual Capital• Partnerships• Sponsors• Communicate importance, significance and
relevance of research• Internal funding sources/grants– Collaborate w/ other faculty
4. Building Financial Capital
• Cost-benefit principle– Events
• Institutional• External– Events
Funding Sources• Internal
– Budgeting processes– Students/tuition and
student activities – Other programs – Endowment
Don’t forget about planned giving
• External– Private
• Kauffman• Coleman• Lowe• Family Foundations• Family Enterprises• Alumni• Corporate gift match• Corporations/Sponsors
– Public• Economic development• Local, state and federal
funding
Professional Development
• In the long run, what successes will benefit the center and your career?– Networking– Programming & service– Relevant Research– Resource Development Success Record– Fulfillment
In Sum….To become self-sustaining, or enhance your
position, you should create and monitor a business plan which addresses the four types of capital and is widely distributed.
Questions? Thanks!• Andrew Keyt– 312.915.6490– [email protected]
• Carol Wittmeyer– 716.375.2363– [email protected]
• Joseph Astrachan– 770.423.6045 – [email protected]
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