Family Businesses and Its Impact on the Economy

Abstract

The family business is the most frequently encountered ownership business model in the world and their impact on the global economy is considered significant. It is estimated that the total economic impact of family businesses to global GDP is over 70%. Family businesses are recognized as one of the engines of the post-industrial growth process since they are given credit for developing across generations' entrepreneurial talent, a sense of loyalty to business success, long-term strategic commitment, and corporate independence. This transformation can be achieved if the micro, small and medium scale enterprises (family owned businesses included) are encouraged to grow through the provision of finance and human capital. The key result of this study shows that Family firms are an integral part of Nigeria’s economy and have contributed significantly to GDP of the country which sustains economic growth. Keywords: