Determinants of rural and urban family firm resilience

Data from 311 rural and urban family firms from the National Family Business Panel (NFBP) were used to investigate the relative contributions of human, social, and financial capital resources, normative and non-normative disruptions, and federal disaster assistance on family firm resilience. Results indicate that the sets of social capital and disruption variables were significantly and negatively related to firm resilience for rural firms, while perceiving the business as a way of life was significantly and positively related to firm resilience for urban firms. Federal disaster assistance was negatively related to firm resilience for both rural and urban firms. Additional findings, conclusions, and implications of findings are discussed.

Research highlights▶ The sets of social capital and disruption variables were significantly and negatively related to firm resilience for rural firms. ▶ Perceiving the business as a way of life was significantly and positively related to firm resilience for urban firms. ▶ Federal disaster assistance was negatively related to firm resilience for both rural and urban firms.