Typical Approaches to Family Businesses Financing in the Czech Republic in period 2020-2022

The main aim of this paper is to determine whether the analysed groups of family business units differ significantly in their financial indicators. We examined a selected sample of family businesses based on data from their financial statements for the period 2020–2022, obtained from the Albertina database. Our analysis included almost 500 family companies in the Czech Republic that provided data to Albertina for all three years under review. Family companies were identified according to typical approaches to family business financing in the Czech Republic. The monitored indicators include debt ratio, return on equity (ROE), and personnel costs as a percentage of total costs. The cluster analysis identified three clusters of family firms. Each cluster was described according to reported accounting data, size, and sector of the main activity of the grouped enterprises. It is evident that family businesses listed in the Czech family business register are micro, small, and medium-sized enterprises; large businesses are not included in the register. The highest representation is in the manufacturing industry, mainly metal processing, which applies to all three clusters. In the cluster analysis, we focused on centroids (typical average companies in the cluster), which represent typical approaches to corporate financing. The approach of family firms to debt financing is crucial, as most firms are risk-averse and primarily use their own capital for financing.