Creating Value Across The Generations
23rd August 2017
From the moment any entrepreneur decides to start a new business, there are challenges to overcome. Having an idea is only the start. Whether you’re a new entrepreneur, or a member of a multi generational family business, you to need to keep innovating and learning. As one family business owner said to me recently, you need to ‘out-entrepreneur the entrepreneurs’.
Combining this entrepreneurial mindset, and leveraging their heritage and generations worth of knowledge and experience, can boost business performance. By doing this family firms are in a great position to continue to grow, creating value over the long term. It’s part of the reason that, as studies show, family firms outperform non-family businesses over the long term.
And family businesses can continue to create value over the long term because they are more resilient. Studies show that during economic downturns family firms fare better than their non-family competitors. Part of that resilience is down to the fact that they carry less debt – they have a longer term investment horizon and focus more on internal financing for growth.
People are at the core of every business, and competition for talent is fierce. But family businesses have an advantage here too. Research shows that family businesses have higher staff retention rate. Figures from the UK Workplace Employment Relations Survey suggest that family business also performs particularly well for job satisfaction and employee loyalty.
With these, and other advantages, available to them it’s no surprise that many of the oldest and most successful businesses in the world are convinced of the benefits being a family business brings.