Family businesses are one of the oldest forms of commercial organization. They continue to be among the most common forms of business today and the driving force behind the global economy. According to the Family Firm Institute, family-owned companies account for two-thirds of all businesses worldwide, generating more than 70% of global GDP annually.
Family businesses are often seen as stable, but perhaps conservative and outdated. Their behaviour might often seem irrational and they rarely are transparent in terms of business operations. Figures confirm that family businesses better retain their talents, create a strong culture based on values and commitment and investment in training.
These is very related to one of the concepts discussed in our last event “El reto de reinventar Europa desde la perspectiva de la Empresas Familiares” introduced by Cristina Cruz. This concept is called socio-emotional wealth and describes how culture within the family sometimes prevail as a determinant factors in terms business decisions over revenues or other economic variables. For instance, when making an important business decision the family might first analyse how its outcome might impact the family name and reputation before considering economic profits.
Pablo Alonso – Patallo de la Torre
President at the Family Business Club