Family Business Around the World

Abstract

Over the last three decades, there has been a growing interest in the contribution of family firms to the local and global economic landscapes. Although statistics are not available, it is generally acknowledged that over two-thirds of businesses around the world are family businesses. Research in family business reveals, however, that only 30 % of these businesses survive into the second generation, with most intergenerational transitions failing after the second generation (only 10–15 % continue into the third generation, and 3–4 % into the fourth generation). There is increasing interest by members of existing family businesses, practitioners and consultants working in this area, as well as researchers, in understanding the issues that underpin the success, or failure, of multigenerational family business. It is widely accepted that family businesses have strong values. Very few studies, however, have focused on this phenomenon, and there are no studies that examine how family business values support its continuation. This chapter presents an overview of issues related to multigenerational family firms, from the establishment of the business, to its continuity across three generations.