Family businesses are responsible for over 70% of global GDP and provide 60% of the world’s employment, showing their substantial role in the global economy. Moreover, their vital role in innovation and economic development cannot be overstated.
Given these impactful contributions, it’s important that governments and policymakers support the growth and sustainability of family enterprises. With their unique structures and operations, these businesses can often prove more resilient in economic downturns.
Families with an interest in entrepreneurship must prepare by creating robust business plans, establishing organizational structure, and maintaining a balanced personal and professional life. Successful market penetration relies on thorough research, innovative strategies, and the understanding of tax and funding implications.
Family-owned businesses have proven their economic fortitude, outperforming non-family enterprises by 33% from 2017 to 2022. This strength comes from personal stakes in the businesses, emotional commitment, strategic long-term view, and less bureaucracy.
The challenges brought by COVID-19 pandemic further highlight the resilience of family-owned firms.
Role and resilience of family enterprises
Their ability to adapt quickly, make fast decisions, and focus steadfastly on long-term sustainable development has indeed set them apart from the competition.
But, family businesses are not just about the money. The emotional investment, the vision for the future, and the determination to maintain the family legacy can bring an organizational advantage, particularly during a crisis.
Several opportunities exist for family businesses across different sectors: pet-sitting, cleaning services, food delivery, fitness or tutoring services, or e-commerce stores. Each, however, requires thorough market research and a well-planned business strategy.
One attractive business model for families is dropshipping. It’s an online business that requires less capital, with procurement and shipping being handled by a third-party supplier. With this model, families can enjoy a balance in work and personal life.
No matter the business model, prioritizing wise investments, commitment, and professional boundaries is key to a successful family venture. A careful balance of these components will lay a firm foundation for a prosperous family-owned business.
