Building Sustainable Family Business Programs

• Andrew Keyt, Loyola University• Carol Wittmeyer, St. Bonaventure University• Joseph Astrachan, Kennesaw State University

GoalsTo provide: I. Background on family business centers

including survey resultsII. Framework to analyze sustainability of family

business centers from a capitalization perspective

III. Suggestions to create, maintain or enhance sustainability

IV. Professional Development suggestions

I - Background

• New and fledging discipline– Multidisciplinary

• Complexity of stakeholders with various goals

II – Sustainability Framework1. Political Capital2. Social Capital3. Intellectual Capital4. Financial Capital

1. Political CapitalExternal• Members• Sponsors• Advisors• Boards• Alumni

Internal and Structural • University

Administration• Faculty

Debate: does being a part of a specific school (eg business) hurt or help?

Political Capital Cont’d

Organizational structure:• 64% in business school• 18% not in bus school• 18% separate 501c3

2. Social Capital• Goodwill – stakeholder satisfaction• Brand & Communications – internal and

external center awareness; frequency and relevancy of communications

• Staff - capability, dedication, charisma, synergy and continuity

• Networks – affinity groups internally and externally

3. Intellectual Capital

• Knowledge – thought leadership– Programming – relevant programming

• Niche – particular expertise• Research – future thought leadership

4. Financial Capital

• Sources – where do funds come from and what power influences accompany them?

• Control – what expectations come from funding sources?

• Uses – how are financial resources used to invest in the center?

Survey - RevenuesDues:• Average $2,145• Range $385-$6,950Budget:• Average budget: $250K• Range: $57K - $800KEndowment:• Average: $800K• Range: $0-$3.5M

Current Revenue Sources:• Dues – 50%• Sponsors – 33%• Events – 10%• Endowment Grants &

Fundraising – 3%• University – 2%• Other – 2%

More on Revenue Sources

Grants:• 4 received grants

ranging from $1K to $300K– 3 were from private

sources

Events held:• 13 per year on average– Range 4-35

• Only 11% covered by event fees

III – Building Sustainability1. Political Capital2. Social Capital3. Intellectual Capital4. Financial Capital

1. Building Political Capital

• Internal Support – build collaborations:– Supervisors– Colleagues• Center, other divisions

– Faculty• Business school• Other disciplines

– Students

Building Political CapitalInternalStaffing – is the center one person?What options do you have?• Full-time vs. part-time• Joint appointments w/ other departments• Visiting appointments• Executive-in-Residence

Staffing Survey Results • Full-time staff 2– Range 0 – 7

• PT staff 1– Range 0-4

• Student workers 1– Range 0-4

• Contractors 3– Range 0-9

• Full-time faculty 1– Range 0-12

• Part-time faculty 1– Range 0-4

• Director Tenure – 9 yrs– Range 1-17

• Total # directors – 1– Range 1 – 4

• Average members 59– Range 22-125

Building Political Capital• External Support – build collaborations:– Board– Members– Alumni/Volunteers– Sponsors/Donors– Other Centers/Orgs– Media– Networking Groups– Funders

Board Survey ResultsBoard of Advisors:• 92% have one• 12 members on average– 70% have family members– 65% have sponsors– 57% have administrators– 30% have faculty– 13% have nonsponsor advisors

2. Building Social Capital

Building the right relationships & building the center reputation around thought leadership.

• Networking• Communications

3. Building Intellectual Capital• Partnerships• Sponsors• Communicate importance, significance and

relevance of research• Internal funding sources/grants– Collaborate w/ other faculty

4. Building Financial Capital

• Cost-benefit principle– Events

• Institutional• External– Events

Funding Sources• Internal

– Budgeting processes– Students/tuition and

student activities – Other programs – Endowment

Don’t forget about planned giving

• External– Private

• Kauffman• Coleman• Lowe• Family Foundations• Family Enterprises• Alumni• Corporate gift match• Corporations/Sponsors

– Public• Economic development• Local, state and federal

funding

Professional Development

• In the long run, what successes will benefit the center and your career?– Networking– Programming & service– Relevant Research– Resource Development Success Record– Fulfillment

In Sum….To become self-sustaining, or enhance your

position, you should create and monitor a business plan which addresses the four types of capital and is widely distributed.

Questions? Thanks!• Andrew Keyt– 312.915.6490– AKEYT@luc.edu

• Carol Wittmeyer– 716.375.2363– cwittmey@sbu.edu

• Joseph Astrachan– 770.423.6045 – Joe_Astrachan@coles2.kennesaw.edu