Family businesses are the backbone of the world economies. They are different from other companies because management and/or ownership are influenced by members of a family.

 

Their strengths are the passion and involvement of entrepreneurial families, that ensure excellent results. These results are possible only if they can reach a harmony between family and business dimensions.

 

Actually, if they cannot find a way to make the family business system work, they run the risk of not being able to give a future to the company and serenity to the family.

Challenges

The great energy transmitted by the entrepreneur and his family into the company system is not enough in the long term.

The increase of people involved, the growth of the company and its complexity make business management more and more difficult.

Conflicts vs Deadlock

The first challenge is the quality of confrontations.

Too much emotional involvement turns into conflicts that hurts people and destroy relationships.

Too much fear of ruining relationships causes the lack of confrontations on important decisions about the business.

Cohesion and Trust vs Openness and Professionalization

Some of the founding elements of family businesses are trust and cohesion among its members.

The development of the company requires its professionalization through the growth of managerial skills of each family member but also the inclusion of external people.

Inheritance and Continuity

Family businesses are not necessarily less long-lived than managerial ones.

However, they must pay attention to planning the inheritance from one generation to the next.

This is not a moment but a process that lasts a long time (even decades), to prepare the new generation to take the lead with the aim of ensuring continuity to the business.

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