From Join-Stock Company to Family Business. The Role of Maxmilian Herget During the Foundation of the Cement Factory in Radotín near Prague (1871-1874)
Abstract
With the crash on the Vienna Stock Exchange in 1873 began the deepest economic crisis that the western world had ever experienced. This economic crisis had a strong impact on the industry of the Habsburg Monarchy, which - among other things - resulted in a temporary decline of the joint-stock business.
This paper is a case study, which focuses on the interpretation of business strategies of entrepreneur Maximilian Herget (1823-1893) in establishing the Prague joint-stock factory for hydraulic cement (1871-1874, factory in Radotín near Prague) and its transformation into the family company. The paper thus tries to approach one of the possible impacts of the Great Depression on the joint-stock business in the Habsburg monarchy - replacing unprofitable joint-stock company with prosperous family business.