Businesses are most commonly categorized according to their industry or market size. Much ink has been spilled on the challenges that are specific to startups or SMEs in contrast with larger companies. But a more telling characteristic of businesses worldwide lies in the intricacies of their ownership structures. Family businesses come in all shapes and sizes, from rural family farms to multinationals, and share many of the same challenges across industries.
Today,
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- On average, family businesses represent an estimated 70% of businesses around the world
- These businesses account for up to 50% of global GDP
- Family businesses also employ up to 70% of the workforce in most countries
- Families are the primary source of new business financing, as 85% of firms start with some level of family backing
THE FAMILY BUSINESS MODEL IS AT A TIPPING POINT IN A FAST-EVOLVING ENVIROMENT
Family businesses play a crucial role in economies today. Looking 25 years into the future, it is clear that entrepreneurial families will face new challenges that could threaten their survival. It is estimated that only 13% of family businesses will make it passed the 3rd generation. These challenges, if not addressed, could have a ripple effect on the world economy:
- The retirement of baby boomers is about to bring the largest turnover of economic control in history.
- Income inequality and environmental degradation are merging global economic and social trends that may require traditionally conservative enterprising families to adopt new policies to ensure long-term sustainability.
- Rapid technological advances are shortening product lifecycles. Entrepreneurial Families will have to instill innovation within their company culture.
The definition of family is changing across the globe. Families in business will have to learn to leverage these new complexities to retain the competitive advantage they derive from well-defined values and strong relationships.
THE FAMILY MATTERS FORUM: A SOLUTION-DRIVEN BRAINSTORM
In order to support family businesses in answering these crucial questions, Business Families Foundation is bringing together a group of world-class business leaders and thinkers at the Family Matters Forum, from November 19 to November 22 in Miami. Some of the participating speakers available for interviews prior to the event include:
EXPERTS AND BUSINESS FAMILIES
John Davis, co-founder and faculty chair of the Harvard Business School Families in Business program. Founder and Chairman of two leading international organizations that support enterprising families: Cambridge Advisors to Family Enterprise, an advisory firm, and the Cambridge Institute for Family Enterprise, a think-tank and educational resource for families.
Howard Stevenson, Sarofim-Rock Baker Foundation Professor Emeritus at Harvard University, described by Forbes magazine as Harvard business School’s “lion of entrepreneurship”. Watch Howard Stevenson on entrepreneurship.
– Ivan Lansberg, Adjunct Professor of Family Enterprises and Academic Director of the Center for Family Enterprises at the NorthWestern University Kellog School of Management. Watch Ivan Lansberg on the Next Generation.
– Peter Vogel, entrepreneur, researcher and trainer. He writes on entrepreneurship, innovation management, entrepreneurial ecosystems, NxG topics, youth and the youth labor market. Watch Peter Vogel on TedX Lausanne
– Belen Vilalonga, Associate professor of Management and Organizations at the New York University Stern School of Business. Her award-winning research has been published in leading academic journals, cited over 750 times in academic publications, and featured on CNBC, NPR,Bloomberg Businessweek, The Economist, Expansion, Financial Times, Forbes, International Herald Tribune and many other international business publications
– Gonzalo Jimenez, chair professor of strategy, corporate governance & family business director of the centre of enterprising families at Universidad del Desarrollo, Chile.
– Thierry Malleret, Former Managing Director and Founder of the Global Risk Network, World Economic Forum; Managing Partner, The Monthly Barometer, France.
– Amongst the attending families are de Gaspé Beaubien Family (Quebec), Mannix Family (Alberta), Maldonado Family (Venezuela), and Garza-Lagüera Family (Mexico).
