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Equilibrium position of a competitive market must necessarily be an „pareto optimal": with every transaction made, people get rich without anyone else to deplete. If there is no increasing income - economies of scale or proportion - in the production system, then each „pareto optimal" condition is a competitive equilibrium position, depending on the distribution of purchasing power. Where there are concerns about income distribution and hence of goods and services between individuals, the state can interfere by changing this algorithm of purchasing power distribution, within the economy. On the other hand, if some individuals are reluctant to risk (theory contradicted by the existence of gambling), then providing insurances is incumbent on mutually beneficial exchanges, because people are willing to pay for the convenience of not having to worry about the future events that may affect their existence. Another problem of the insurance field is that of "moral hazard": since signing an insurance contract, the insured is no longer trying as hard to prevent accidents against which they have been insured, therefore the likelihood of occurrence for such accidents increases. [ABSTRACT FROM AUTHOR]

The main objective of the research is to analyze the factors which influence the intention to start an intergenerational family business in a developing economy, highlighting the measures that can be implemented by decision-makers to stimulate these initiatives. PLS-SEM was used to analyze the data issued from 200 valid questionnaires. The survey was applied to 950 individuals from Romania. We focused on four variables: the closeness to family members, the financial support expected from family, the independence of individuals regarding the intention to start their own business and the intention to form partnerships with family members. All the hypotheses were validated, according to the final results. Thus, closeness to family members has a direct and positive impact on both the financial support expected from the family and the intention to form intergenerational family businesses. There is also a direct correlation between the financial support received from family and the intention to have partnerships with family members. Individuals who are closer to their families are not interested in developing independent businesses. There are several studies on family businesses in Romania, but there is no research analyzing the impact of closeness to family on the intention to develop an intergenerational family business. The study is useful for the decision-makers who can create national strategies in order to stimulate families to develop their own businesses. [ABSTRACT FROM AUTHOR]