These days it is frowned upon—most publicly listed companies and professional firms ban it. Still, family businesses make up more than 90% of the world’s enterprises. Many of them, quite literally, are mom-and-pop shops. Some are large-ish businesses in smallish economies, like the one in Athens where this guest Bartleby, straight out of university, was put in charge of managing relations with institutional investors.
For the corporate heir, meeting family expectations and continuing a legacy while achieving personal fulfilment can generate a mass of contradictions, as Mann splendidly illuminated. Even in companies that insist they are meritocratic, no amount of skill will convince all your colleagues that you have actually earned your job. Any pre-existing domestic frictions might make their way into the business. And vice versa: disagreements over the business can breed feuds, often between siblings.
No wonder some heirs decide to hold on to their shareholdings, perhaps a board seat, but pursue a career elsewhere. Not all Waltons work for Walmart; it is hard to find Hoffmanns among executives at Roche, the Swiss drugmaking giant founded by their forebear in 1896.
For those who nevertheless decide to take an active role in the family business, it does not have to be a poison. Some of the logic that historically made family firms de rigueur continues to stand. For example, designated heirs—like Mr Arnault’s five children, all of whom now run parts of—are groomed early on, so by the time they are ready to take over they have already acquired some industry knowledge by osmosis.
At the personal level, work is not solely about money but also about empowerment and prestige. Your name on the door may bestow a sense of purpose. Preserving the legacy of an empire can be rewarding, so long as the heir displays passion and persistence. They can probably forget being one of the gang when it comes to office gossip, but they can earn their colleagues’ and subordinates’ respect with modesty and hard work.
Shouldn’t have trusted any of my family.
Clients definitely panicking?
💊🍀 🥛
This is a situation that often arises, as family businesses often have strong family cultures and values that may be at odds with modern business practices and trends.
These days it is frowned upon—most publicly listed companies and professional firms ban it. Still, family businesses make up more than 90% of the world’s enterprises.
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Working with a family-run organization comes with its unique challenges and dynamics, from managing relations with investors to navigating nepotism. Nevertheless, family businesses continue to thrive and contribute significantly to the global economy.
It’s obvious …
% of total $ in the private market?
Frowned on, but still practiced daily.
What is it 🥺
'lucky sperm club' could be a decent rebrand tiessalo
Those kids are never gonna forgive their parents.
Don’t feel the least bit of sympathy for them.
Read Audretsch, D. B. and R. Thurik (2001).
We must resist family businesses. They sooo detract from the profits of your Plutocrats. Get on with it. Can't have reasonable people having a role.