IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i18p13944-d1243669.html
   My bibliography  Save this article

Influences of Start-Up’s Financial Intermingling on Entrepreneurial Stress in Sustainable Family Businesses: Mediation Effect of Work–Family Balance

Author

Listed:
  • Jucheol Choi

    (Institute for Future Innovation, Kyung Hee University, Seoul 02453, Republic of Korea)

  • Daniel Kessler

    (International College, Dongseo University, Busan 47011, Republic of Korea)

Abstract

One factor affecting entrepreneurial success at the small-business start-up level is the impact on family life. This study examines the effects of intermingling financial resources on the quality of life of families operating businesses in South Korea. Based on the Global Entrepreneurship Monitor 2022 assessment, which ranks South Korea 9th out of 51 economies, South Korea emerges as a promising area for scholarly research in this area. The analysis results are as follows: First, when financial intermingling occurs (when family and business finances are merged to some degree), entrepreneurial stress was found to be higher. Second, financial intermingling between family funds and business finances increased entrepreneurial stress by impairing the work–family balance. Third, when one spouse is more dedicated to supporting start-ups, entrepreneurial stress caused by the pressure to use family funds as business finances is greater. As small-business start-ups often require creative means to generate primary financing, resource exchanges between families and businesses may sometimes be a regrettable necessity. However, if the potential downsides of resource exchange are ignored, and resource exchange frequently occurs over a long period of time, it can place significant stress on all parties and may adversely affect the sustainability of a family business.

Suggested Citation

  • Jucheol Choi & Daniel Kessler, 2023. "Influences of Start-Up’s Financial Intermingling on Entrepreneurial Stress in Sustainable Family Businesses: Mediation Effect of Work–Family Balance," Sustainability, MDPI, vol. 15(18), pages 1-14, September.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:18:p:13944-:d:1243669
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/18/13944/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/18/13944/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tia Michelle McDonald & Maria I. Marshall, 2018. "Family Business Responses to Household and Business Cash-Flow Problems," Journal of Family and Economic Issues, Springer, vol. 39(1), pages 163-176, March.
    2. Birte Freudenreich & Florian Lüdeke-Freund & Stefan Schaltegger, 2020. "A Stakeholder Theory Perspective on Business Models: Value Creation for Sustainability," Journal of Business Ethics, Springer, vol. 166(1), pages 3-18, September.
    3. George Haynes & Maria Marshall & Yoon Lee & Virginia Zuiker & Cynthia R. Jasper & Sandra Sydnor & Corinne Valdivia & Diane Masuo & Linda Niehm & Renee Wiatt, 2021. "Family business research: Reviewing the past, contemplating the future," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 70-83, July.
    4. Edelman, Linda F. & Manolova, Tatiana & Shirokova, Galina & Tsukanova, Tatyana, 2016. "The impact of family support on young entrepreneurs' start-up activities," Journal of Business Venturing, Elsevier, vol. 31(4), pages 428-448.
    5. Stoner, Charles R. & Robin, Jennifer & Russell-Chapin, Lori, 2005. "On the edge: Perceptions and responses to life imbalance," Business Horizons, Elsevier, vol. 48(4), pages 337-346.
    6. Tansel Yilmazer & Holly Schrank, 2010. "The Use of Owner Resources in Small and Family Owned Businesses: Literature Review and Future Research Directions," Journal of Family and Economic Issues, Springer, vol. 31(4), pages 399-413, December.
    7. William C. McDowell & Lucy M. Matthews & Ryan L. Matthews & Joshua R. Aaron & Diane R. Edmondson & Cheryl B. Ward, 2019. "The price of success: balancing the effects of entrepreneurial commitment, work-family conflict and emotional exhaustion on job satisfaction," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1179-1192, December.
    8. Roland Kidwell & Franz Kellermanns & Kimberly Eddleston, 2012. "Harmony, Justice, Confusion, and Conflict in Family Firms: Implications for Ethical Climate and the “Fredo Effect”," Journal of Business Ethics, Springer, vol. 106(4), pages 503-517, April.
    9. Yeh, Yin-Hua & Liao, Chen-Chieh, 2021. "The impact of market and industry risk on family succession," The North American Journal of Economics and Finance, Elsevier, vol. 55(C).
    10. Amber Remble & Maria Marshall & Roman Keeney, 2014. "Household Saving Behavior and the Influence of Family-Owned Business," Journal of Family and Economic Issues, Springer, vol. 35(3), pages 411-422, September.
    11. Maria I. Marshall & Holly L. Schrank, 2020. "Sink or Swim? Impacts of Management Strategies on Small Business Survival and Recovery," Sustainability, MDPI, vol. 12(15), pages 1-21, August.
    12. Aliaa El Shoubaki & Jörn Block & Frank Lasch, 2022. "The couple business as a unique form of business: a review of the empirical evidence," Management Review Quarterly, Springer, vol. 72(1), pages 115-147, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. George Haynes & Maria Marshall & Yoon Lee & Virginia Zuiker & Cynthia R. Jasper & Sandra Sydnor & Corinne Valdivia & Diane Masuo & Linda Niehm & Renee Wiatt, 2021. "Family business research: Reviewing the past, contemplating the future," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 70-83, July.
    2. Gottschalck, Nicole & Rolan, Lisa & Kellermanns, Franz W., 2023. "The continuance commitment of family firm CEOs," Journal of Family Business Strategy, Elsevier, vol. 14(4).
    3. Renee D. Wiatt & Yoon G. Lee & Maria I. Marshall & Virginia S. Zuiker, 2021. "The Effect of Cash Flow Problems and Resource Intermingling on Small Business Recovery and Resilience After a Natural Disaster," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 203-214, March.
    4. Gloria Leonor Ortiz Morales & Juan Carlos Ramos Aguilar & Katherin Yineth Lozada Morales, 2022. "Culture as an obstacle for entrepreneurship," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-14, December.
    5. Alamir Al-Alawi & Sohail Amjed & Ahmed Mohamed Elbaz & Nasser Alhamar Alkathiri, 2023. "The Anatomy of Entrepreneurial Failure: Antecedents of the Performance Failure Appraisal Inventory and the Role of Social Support," Sustainability, MDPI, vol. 15(9), pages 1-16, May.
    6. Emiel L. Eijdenberg & Kathrin Borner, 2017. "The Performance Of Subsistence Entrepreneurs In Tanzania’S Informal Economy," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-22, March.
    7. Kim, Yeonshin & Hur, Won-Moo & Lee, Luri, 2023. "Understanding customer participation in CSR activities: The impact of perceptions of CSR, affective commitment, brand equity, and corporate reputation," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    8. Nikola Rosecká & Ondřej Machek, 2023. "How Relational Conflict Harms Family Firm Performance: The Mediating Role of Family Social Capital and the Moderating Role of Family Ownership," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 854-869, December.
    9. Fracarolli Nunes, Mauro & Lee Park, Camila & Shin, Hyunju, 2021. "Corporate social and environmental irresponsibilities in supply chains, contamination, and damage of intangible resources: A behavioural approach," International Journal of Production Economics, Elsevier, vol. 241(C).
    10. Justin R. Hall & Selen Savas-Hall & Eric H. Shaw, 2023. "A deductive approach to a systematic review of entrepreneurship literature," Management Review Quarterly, Springer, vol. 73(3), pages 987-1016, September.
    11. Tarcia Camily Cavalcante Quezado & Nuno Fortes & William Quezado Figueiredo Cavalcante, 2022. "The Influence of Corporate Social Responsibility and Business Ethics on Brand Fidelity: The Importance of Brand Love and Brand Attitude," Sustainability, MDPI, vol. 14(5), pages 1-20, March.
    12. Charles S. Tundui & Hawa P. Tundui, 2018. "Examining the effect of child labour in the profitability of women owned enterprises: a case of microcredit supported enterprises in Tanzania," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-16, December.
    13. Mahto, Raj V. & Llanos-Contreras, Orlando & Hebles, Melany, 2022. "Post-disaster recovery for family firms: The role of owner motivations, firm resources, and dynamic capabilities," Journal of Business Research, Elsevier, vol. 145(C), pages 117-129.
    14. Boris Rumanko & Zuzana Lušňáková & Monika Moravanská & Mária Šajbidorová, 2021. "Succession as a Risk Process in the Survival of a Family Business—Case of Slovakia," JRFM, MDPI, vol. 14(10), pages 1-20, September.
    15. Anastasiia Laskovaia & Galina Shirokova & Michael H. Morris, 2017. "National culture, effectuation, and new venture performance: global evidence from student entrepreneurs," Small Business Economics, Springer, vol. 49(3), pages 687-709, October.
    16. Giuseppe Criaco & Philipp Sieger & Karl Wennberg & Francesco Chirico & Tommaso Minola, 2017. "Parents’ performance in entrepreneurship as a “double-edged sword” for the intergenerational transmission of entrepreneurship," Small Business Economics, Springer, vol. 49(4), pages 841-864, December.
    17. Dan Wang & Lili Wang & Ling Chen, 2018. "Unlocking the influence of family business exposure on entrepreneurial intentions," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 951-974, December.
    18. Anna M. Hansson & Eja Pedersen & Niklas P. E. Karlsson & Stefan E. B. Weisner, 2023. "Barriers and drivers for sustainable business model innovation based on a radical farmland change scenario," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8083-8106, August.
    19. Adam Samborski, 2022. "The Energy Company Business Model and the European Green Deal," Energies, MDPI, vol. 15(11), pages 1-15, June.
    20. Meoli, Azzurra & Fini, Riccardo & Sobrero, Maurizio & Wiklund, Johan, 2020. "How entrepreneurial intentions influence entrepreneurial career choices: The moderating influence of social context," Journal of Business Venturing, Elsevier, vol. 35(3).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:18:p:13944-:d:1243669. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.