Family capital: The key to entrepreneurial and family success

Abstract

Family capital, the human, social, and financial resources that a family provides its members, is often the key to successfully launching a new business as well as maintaining healthy family relationships. The strength of family capital in a family is largely a function of several factors: (1) family structure, (2) family culture, (3) family activities, (4) family trust, and (5) family capital transfer activities for the next generation. Each of these topics is reviewed in the chapter. Families who own businesses that are able to understand and strengthen each of these factors will tend to have favorable outcomes for both their businesses and their families. The chapter outlines several strategies that family owners and managers can use to strengthen family capital for the benefit of their businesses and their families.