What are the right reasons for maintaining a family business through generations?
A business whose ownership is controlled by a family can have real competitive advantages over publicly owned companies. A family can achieve unity of opinion on how to manage the business, resulting in the willingness to take a patient, long-term perspective, to invest in corporate culture, and to adopt contrarian strategies. Also, a business whose ownership is controlled by a family can be much more than a business. It can become “family” to its employees, its customers, and its trade partners. It can be a force for good in its community through civic involvement and charity. And it can serve as an example to other entrepreneurs. Families who value these opportunities are motivated to invest the time and energy to be responsible, informed owners and to make sure that their businesses carry on as a legacy to future generations. Research has confirmed the obvious: when the people managing a business are also the owners (usually the case with family-controlled businesses), shareholders
