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SUE BIRLEY IS PROFESSOR OF management at Imperial College, London, England, Stanley Cromie is professor and director of the Centre for Management Education at the Ulster Business School, Ulster University, Northern Ireland, and Andrew Myers is with the Cranifield School of Management, England. This paper discusses the need for information in organisations and the particular relevance of non-documented data which is gathered by managers from a network of personal contacts. It examines some of the issues involved in assessing the characteristics of personal networks and proposes that network activiety, density and diversity are the crucial features of business networks. The paper suggests that personal networking is a particularly appropriate mechanism for information gathering by owners/managers of small organisations, examines the personal networks of 274 business proprietors and compares the findings of this study with similar ones conducted in the United States of America, Sweden and Italy. Results indicate that entrepreneurial networks in Northern Ireland are smaller than elsewhere and that little zeal is displayed in increasing their size. However, considerable energy is devoted to maintaining existing networks and they are of relativly high density. Northern Irish networks are quite heterogenous with business associates, family, friends and professionals to the fore but the dearth of owner/managers and employees in the personal contact networks is quite surprising.

Attention has been drawn recently to the differences which exist between family and non‐family firms, but Ward indicates that there are different types of family firms. More specifically, as Dunn puts it, “in some families it is evident that the business serves the family, as opposed to the family serves the business”. For some families in business, economic rationality dominates decision making, yet for others a “family first” ethos is to the fore, while a third group recognises the need to respond to economic and family considerations. In this paper firms which pay attention to both family and business are not investigated. However, Ward’s model of the characteristics of family firms is discussed and data based on a Scottish and Irish sample of 234 firms which put family first when business and family objectives clash, and 830 firms which focus on business objectives, are presented. Results suggest that the former exhibit several of the characteristics defined by Ward. This suggests that a considerable number of family firms may be lifestyle – as opposed to growth‐oriented businesses. These results have major implications for policy makers. If a substantial number of family firms differ from rational economic ventures by their methods of operation, then policy makers should be flexible with regard to the methods of intervention required to support this important section of the SME community. Policy issues in connection with family firms in Britain are considered in the light of our findings.

Family ®rms account for around 75 per cent of all business enterprises in the UK, but there is a lack of research on these businesses. The family ®rms literature recognises that there are dierences between family and non-family businesses; dierences that can be explained by con¯icts between a juxtaposition of family values and business values. Consequently, family ®rms tend to have dierent approaches to ownership and control, the composition of boards, employment practices, strategy formulation and succession management.This paper reports on the demographic characteristics, ownership con®gurations, boardroom arrangements, managerial and succession practices of a random selection of 1,065 family ®rms located in Scotland and Northern Ireland. Results reveal that the ®rms are well-established, privately owned, small businesses in which the lead family retains almost all shares and dominates the board of directors. These ®rms give some preferential treatment to family members in employment and managerial matters but business objectives are not ignored. In keeping with previous research, succession matters are not regularly discussed and much more needs to be done to allow for a smooth transition from one family generation to another.The authors conclude by arguing that there is an urgent need for policy makers to address the problems and needs of small family ®rms and to develop frameworks and practices for assisting these businesses. MANAGERIAL AND POLICY IMPLICATIONS. Family ®rms are the most common kind of ®rms in the UK. . These businesses face a unique range of problems as a result of a clash between family and business objectives. . Decision making is based on rational economic assumptions and emotion-based family considerations. . Heavy reliance on family members for most managerial matters means that alternative opinions and perspectives are denied to family ®rms. . Preferential treatment for family members is common and potentially dysfunctional. . Preferential treatment for family members creates a committed team well equipped for the long haul of business development. . Managerial succession is a particularly dicult problem in family businesses. . Policy makers must address the unique problems of family businesses and develop new methods for eective intervention in support of them.