Conflict In Family-Owned Businesses

Microsoft Survey Reveals Generational Differences

Technology is critical to the current and future success of small family businesses, especially for those with higher revenues and younger owners. However, six in 10 business owners with multiple generations working in the company report that the older and younger generations disagree about how to invest in technology.

These findings and much more about small businesses and the use of technology were uncovered by Microsoft Corp., in a recent telephone survey of 252 small-business owners.

One question asked whether respondents agreed that technology helps small family businesses in the following ways:

• Increase the efficiency of our operations (79% agreed)
• Grow the business (74% agreed)
• Provide better customer service (74% agreed)
• Improve the quality of our image or product (70% agreed)
• Stay competitive with bigger businesses (68% agreed)
• Gain an advantage over our competition (68 % agreed)

“Sure, we’ve had disagreements over investing in technology upgrades, and to tell the truth, I’m not exactly thrilled about spending money for the latest and greatest technology if it isn’t going to directly impact the bottom line,” relates Adam Williams, owner of ROI Marketing Services, a consulting firm in Memphis, TN. “The challenge to my son, who always thinks we need the latest gadget, is to prove to me that the investment in technology will help the business grow. If there is a positive return on our investment, I’ll listen.”

Some additional facts the survey revealed:

• Seven in ten owners of multiple-generation businesses stated the younger generation is more enthusiastic about technology than the older.
• Two out of three owners agreed that technology is a good way to attract younger generations to their companies.
• More than three in four owners reported that technology is important to sustaining businesses, including 52 percent who said it was very or extremely important.
• Forty-eight percent of owners reported that it was very important in growing their business.

The most satisfied companies, which invested in new technology, were those with the youngest owners and those with the highest revenues. Also, according to results in the survey, reliance on mobile technology is most likely for companies with younger decision makers (76 percent) and higher revenue factors (79 percent). The most likely technology purchased by the small family-owned businesses polled continues to be personal computers, laptops, and industry-specific software.