The family business is the lifeblood of our global economy. This has been true throughout history and continues to be true today. The vast majority of firms are family owned, and they account for a significant percentage of most countries’ gross domestic product. Very importantly, they employ the majority of workers and account for the highest percentage of all new jobs. Family-owned firms are the pillars in our communities and our business society.
This book was written to introduce the reader to the importance of family-owned businesses to provide some evidence of their importance and to make the case that family-owned businesses are separate and unique compared with nonfamily businesses. When a family business owner or top manager reads a business magazine or watches a television show on a financial news channel, do they see themselves being discussed? Are they able to relate to a Fortune 500 nonfamily firm? Are they able to benefit from the work of many business academics and apply the newly presented concepts and theories to increasing the effectiveness and profitability of their family firm? The answer is, most often, no.
Family business owners, employees, and family members—you are different! You have specific issues, problems, and most importantly, opportunities that nonfamily firms do not have. As the academic community increasingly realizes that you are different, they will do a better job of providing you with helpful information in the form of specific research, tools, and techniques for family firms.
It is hoped readers gain a more complete understanding of the complex nature of family businesses and have a deeper appreciation for the challenges and struggles of family firms. It is also hoped that a family business owner will feel more pride as to the contribution they make to our society. These firms should be celebrated, not derided. A family firm that has succeeded for two to three generations, or longer, is worthy of our esteem. More than likely, their nonfamily competitors already give them considerable respect in the marketplace