This article compares the survival strategies used by the founders of family and nonfamily businesses in the hostile economic environment of Lithuania. In this exploratory study, six firms were studied in depth: three family firms and three nonfamily firms. These firms were in that sector of the Lithuanian economy designated as “light industry.” The major strategies used by founders to keep their firms viable include (1) developing social capital to gain favor with local authorities and important customers and suppliers and (2) using family networks to gain access to human and financial capital. The family businesses appeared to be more successful than the nonfamily enterprises. Moreover, the ability to draw on family resources seemed to be the predominant reason for their modest success.
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