Proceedings of The 2nd International Academic Conference on Management and Economics
Customer’s Approach to Company Type Selection in Developed and Developing Countries
Although the business conditions across the countries are different, small and medium-sized enterprises (SME) are considered to be the driving force for economic development and growth within all of them. Moreover, up to half of the enterprises within the European Union are created on a family basis and considered family businesses. Estimates of the number of family businesses in developing countries are even higher, and e. g. in Sub-Saharan Africa, up to 80% of all private enterprises are expected to be the family category. These companies are involved in significant job creation and thus have a great potential in the fight against the poverty that is so typical of developing countries. However, in order for these companies to prosper and survive, the support and interest of customers are needed. Therefore, the aim of this survey is based on data collected from the primary questionnaire survey, to identify and compare what kind of companies are preferred by customers from developing countries and whether their preferences are similar in comparison to the respondents from more developed nations. Research took place in two selected regions, specifically in Liberec, Czech Republic, Europe (a developed country) and Mbulu, Tanzania, Africa (a developing country). By testing several hypotheses based on extensive literature sources, the existence of the dependence between the customer’s approach to company choice and their place of origin has been proven. Customers in developing countries prefer large non-family businesses over SME family businesses, which make up the majority of the enterprises in these countries.
Keywords: Africa; family-business; questionnaire; SME; Test of Independency.