In general, how do family businesses compare to typical ones in terms of strengths and weaknesses?
In September 2007, the New York Times reported on a study that sheds light on this question. Citing a study by the London School of Economics on 700 manufacturing companies in four countries, including the USA and UK, the Times reported that “the survey found no difference between a family-run company and the typical one,” based on various performance measures. This study tells us that family businesses can compete on the same playing field against non-family businesses, and that family businesses can be as strong (or as weak) as its competitors. It all depends on how that business manages its strengths and weaknesses. When it comes to family businesses, a company’s strengths and weaknesses are usually the opposite sides of the same coin. There are eight areas where a family business tends to differ from a typical business: infrastructure, roles, leadership, family involvement, time, succession, ownership/governance and culture. How a family business manages a certain area determines w
