Family Entrepreneurship and Sustainability: Empirical Analysis from Hungary

Family firms, accounting for 60% of European private sector jobs, play a critical role in advancing business sector sustainability through their practices and employment characteristics. This study examines family entrepreneurs’ attitudes toward sustainability using quantitative methods and the 2023 Global Entrepreneurship Monitor (GEM) Annual Population Survey (APS) dataset from Hungary. Businesses were categorised into non-family, one-person, and family enterprises. After analysing the reliability of sustainability-related questions, two indices measuring attitudes toward environmental, social, and economic sustainability were constructed: a comprehensive index allowing compensation between dimensions and an aggregate evaluation index. Using one-way ANOVA, we compared sustainability indices across the business categories. Results revealed no significant differences in sustainability performance, irrespective of the indicator used. Robustness was confirmed with four control variables (gender, educational attainment, entrepreneurship phase, and number of jobs created), none indicating significant differences. No significant correlations emerged between sustainability indices and entrepreneurs’ age. These findings align with prior analyses, indicating no marked differences in sustainability attitudes between family and non-family firms. Two factors may explain these results: Hungary’s market dominance by microbusinesses due to disrupted business traditions during the socialist era and GEM’s focus on entrepreneurship, favouring smaller entities like sole proprietorships. <br />Implications for Central European audience: This study underscores the need to continuously develop sustainable business attitudes. It also offers a recent literature review, providing valuable insights for Central European researchers, corporate leaders, and family business managers.