• What kinds of social identities can be observed among next generation business family members who have established their own new ventures?
• How do these different social identity types shape the way next generation founders create their new ventures?
• How do business family-related and nonfamily identity considerations interact in shaping these social identities and subsequent new venture creation activities?

Implications for Practice

• Recognizing heterogeneity in founder identities: Next generation founders differ in how they see themselves as start-up entrepreneurs—some seek to preserve the family legacy, others to gain independence, and some to integrate both. Recognizing these identity types helps families and advisors provide more targeted mentoring, communication, and governance support.
• Balancing family legacy and entrepreneurial freedom: Allowing next generation founders to explore ventures outside the family firm can strengthen the family’s entrepreneurial continuity while fostering innovation and autonomy. This balance helps maintain strong family ties while encouraging renewal and long-term adaptability.
• Translating identity insights into practice: Understanding how identity shapes new venture creation enables families, advisors, and investors to anticipate next generation founders’ behaviors and tailor their guidance or evaluation accordingly. Such awareness improves decision-making in succession, venture incubation, and external investment contexts.

• In family businesses in base-of-the-pyramid economies, what kind of relationship exists between business formality and the amount of child work used in the business?
• In what ways might family and market logics moderate this relationship?

Implications for Practice

• Provide stronger development programs directed at semi-formal family businesses that enable them to achieve and maintain full formality.
• Develop programs that can alleviate the added family logic related burdens borne by women owners of family businesses. These could include cooperative childcare arrangements, training about how to best leverage adult family members’ potential labor, and reforms that reduce the legal hurdles women face in operating businesses in Eswatini.
• Provide business performance metrics to BOP family businesses and consider targeted interventions (e.g. subsidies, tax rebates, training) to offset faltering performance.

• How do different types of financial slack (unabsorbed, absorbed, and potential) affect the financial performance of small and medium-sized enterprises (SMEs)?
• Does family ownership influence how effectively SMEs convert slack resources into performance?
• Within family-owned SMEs, does having a family CEO versus a non-family CEO change how slack resources affect performance?

Implications for Practice

• Different types of slack require different strategies. Financial slack refers to the financial “cushion” of resources available beyond what is needed for normal day-to-day operations, which can be used to absorb shocks or fund strategic moves without immediately cutting costs or raising new capital. It is not a one-size-fits-all asset. Family business leaders should distinguish between unabsorbed (e.g., cash reserves), absorbed (e.g., overhead costs), and potential slack (e.g., borrowing capacity), as each demands a unique approach to allocation and monitoring. Understanding the strategic role of each type can help family SMEs deploy resources more effectively and avoid waste.
• Family CEOs can be effective stewards of resources. Our research challenges stereotypes about family CEOs, showing they can excel at using internal financial slack to support decision-making and manage uncertainty. However, they may be less effective when it comes to leveraging potential slack that involves external stakeholders, such as borrowing. Boards and owners should consider offering financial training or advisory support to complement family CEOs’ strengths.
• Leadership choices impact resource efficiency. Appointing a family member versus a nonfamily CEO in a family-owned SME has direct implications for how financial resources are utilized. While family CEOs may bring loyalty and long-term thinking, non-family CEOs might better manage resources tied to innovation or growth. Strategic leadership decisions should consider not only family dynamics but also the nature of the resources the firm needs to manage.
• Governance structures should guard against misuse of slack. Family firms may unintentionally prioritize family goals over business performance, especially when financial slack is involved. Formalizing governance (e.g., through transparent budgeting, oversight mechanisms, or outside advisory boards) can ensure that excess resources are used to support the firm’s strategic goals rather than personal or family preferences. This promotes both accountability and long-term value creation.