Family members matter but how? The effect of family involvement on the outcomes of nascent entrepreneurial teams

This paper examines how varying levels of family involvement influence the outcomes of nascent entrepreneurial teams. By distinguishing between family-only teams and family-mixed teams, the study investigates how co-founding with family members differentially affects venture emergence and failure depending on the team’s relational composition. Findings from the survival analyses suggest that family-only teams are more likely than non-family teams to reach the operating stage by achieving their first sales, whereas family-mixed teams are more likely to be disbanded. Moreover, the recruitment of an additional family member increases the likelihood of first sales in family-only teams but raises the risk of disbandment in family-mixed teams. These findings offer important implications for understanding family involvement’s nuanced role in shaping nascent family businesses outcomes.