TO OWN OR NOT TO OWN? PROPERTY DECISIONS OF SME ENTREPRENEURS
||Levy, Deborah; Morrish, Sussie
||TO OWN OR NOT TO OWN? PROPERTY DECISIONS OF SME ENTREPRENEURS
||17th Annual European Real Estate Society Conference in Milan, Italy
||Small to medium sized enterprises (SMEs) are regarded as the engine of many economies. While large corporations are conspicuous in their ownership and management of commercial properties, SMEs are less visible. Little attention has been given to research at the interface between property and SMEs. A study by Morrish, Levy and Dong (2009) found that SME portfolio entrepreneurs use property strategically in business decision making. These decisions relate to finance, building space and other business related issues. It was evident that portfolio entrepreneurs incorporate both business and personal wealth strategies in their approach to property ownership. This paper reports on a two-part study consisting of a survey followed by an in-depth investigation utilising multiple case studies. The survey of 194 New Zealand SME entrepreneurs indicate that 80% of respondents found property ownership to be a sound strategic business decision. Reasons for property purchase and development varied accross the different stages of business operations. In-depth interviews further suggest that ownership of property is not only impacted by business strategy but also additional external factors, lifestyle and personal considerations together with specific property investment criteria. This study advances theoretical understanding of the interface between SME operations/processes and strategic property management and devlopment, enhancing our understanding of the value property brings to business. In addition the results of this study provides practitioners with a deeper insight into the way SMEs view, acquire, manage and dispose of property.
||Entrepreneurship, property ownership, strategic decision making, SMEs (small to medium enterprises)
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||Real Estate Investment (1)
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