"When you hear the phrase "family business," you might think of the backstabbing Roys of Succession or the dysfunctional Duttons of Yellowstone. But while TV's family companies are entertaining, their real-life counterparts may be even more compelling. Around the world, family businesses produce about two-thirds of all economic output and employ more than half of all workers. And they can be very profitable: The world's 500 largest family businesses generated a collective US$8.8 trillion in 2024."
"If you're not steeped in family business research-and even if you are-their ubiquity might seem a little strange. After all, families can come with drama, conflict, and long memories. That might not sound like the formula for an efficient company. We are researchers who study family businesses, and we wanted to understand why there are so many of them in the first place."
Family businesses account for roughly two-thirds of global economic output and employ more than half of all workers. The world's 500 largest family firms produced a collective US$8.8 trillion in 2024, nearly double Germany's GDP. Family enterprises persist despite potential drawbacks such as interpersonal drama, conflict, and long memories. Common explanations include income generation and creating intergenerational legacies, while entrepreneurs often involve relatives because of care and support during resource constraints. Many of these motives overlap with nonfamily firms, since all organizations balance short‑term profits and long‑term goals and seek reliable, committed workers.
Read at Fast Company
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