Issue 16

ERENET Profile Vol. IV, No. 4.
www.erenet.org
The majority of family business is in the region of south Moravia and the region of Zlín. These two
regions are characterized by the scores of family business which were established before world wars. In the
region of south Moravia there are also the scores of vinicultures, which are owned especially within the family.
The region of Zlín is the domain of the great factories producing shoes, like Baťa.
There is no different between the legal form of business between family and non-family business. The
prevalent legal form for both is the limited company. 56% of family and also non-family business is limited
companies. Only 44% are public companies.
The main branch of family business is within the building industry. For non-family business is the
main branch the engine manufacturing. The second most frequent branch for family business is the textile
industry and also plastic manufacturing. The second most frequent branch for the non-family business is the
metal construction manufacturing. This diversification is done by the characteristic of the manufacturing and
also by the history of industry in Czech Republic. Before the World wars, there were scores of textile factories
owned by the families 16 so the tradition last till today.
Internal factors of competitiveness were observed the innovation of production, consumers care,
qualification level of employees, flexibilities, and the labor costs, and other costs. The main differences
presented in this article were found in the innovations activity of firms, then in care of consumers and the
level of qualification of employees. Other mentioned characteristics were nearly the same so there is no reason
to mention them. The reason of these findings can be the size of the Czech market which is quite small, so
competitiveness must be followed. It seems that family business try to differ from the non-family business
especially by the skills that can be influenced mainly by people not only by the costs.
Innovation
The results show that family businesses are more focused on innovation than non –family business.
Family businesses also manifest their innovative activity manifested in different ways. Koráb and Hanzelková
and Mihalisko (2008, p.62) states that one of the strengths of family business is a special knowledge of
technology and know-how. The same results can be found in the research made in the Europe and also in the
USA. 17 Family business is focus especially on the product range and product design. We can assume that the
innovation of the product can be very simple but effective, so it does not need to be expensive.
Graph 2: Innovation
Innovation
60,00
50,00
44,15
52,22
40,00
36,0435,56
30,00
20,00
10,00
19,82
12,22
Non-family
Family
Source: Processed by author
0,00
lower average higher
16 Josua and Pavel Kohn textile factory, Tugendhat family – owners of scores of textile companies, Otta Kun textile
factory, Teuber textile company, and so on.
17 Making a difference. The Pricewaterhouse Coopers Family Business Survey 2007/2008
TYEE, L. N., Family to family, Family business study, Seattle university: Oregon, 2007
American business survey. Mass mutual. Kenesaw State University. Family Firm Institute.2007.
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