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Family Business Around the World

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Entrepreneurs in Family Business Dynasties

Part of the book series: Management for Professionals ((MANAGPROF))

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Abstract

Over the last three decades, there has been a growing interest in the contribution of family firms to the local and global economic landscapes. Although statistics are not available, it is generally acknowledged that over two-thirds of businesses around the world are family businesses. Research in family business reveals, however, that only 30 % of these businesses survive into the second generation, with most intergenerational transitions failing after the second generation (only 10–15 % continue into the third generation, and 3–4 % into the fourth generation). There is increasing interest by members of existing family businesses, practitioners and consultants working in this area, as well as researchers, in understanding the issues that underpin the success, or failure, of multigenerational family business. It is widely accepted that family businesses have strong values. Very few studies, however, have focused on this phenomenon, and there are no studies that examine how family business values support its continuation.

This chapter presents an overview of issues related to multigenerational family firms, from the establishment of the business, to its continuity across three generations.

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Notes

  1. 1.

    First generation are people born overseas who underwent the process of migration and settled in Australia (in this case). The second generation are Australian-born children of overseas parents; they include overseas-born who arrived in Australia in infancy or early childhood. A second generation person may identify with various concepts of multiple identities. The third generation are the descendants of a migrant family, with at least one grandparent born in overseas, largely integrated into mainstream society.

  2. 2.

    See the story of Luigi Grollo in Chap. 8 (Quote Box 8.16).

  3. 3.

    See the story of Simon Costa in Chap. 10 (Quote Boxes 10.20 and 10.21).

  4. 4.

    The fourth generation may, however, decide to move into new business fields, completely shifting away from the original focus of the business.

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Authors and Affiliations

  1. Study Connections, Melbourne, Victoria, Australia

    Laura Hougaz

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  1. Laura Hougaz
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Hougaz, L. (2015). Family Business Around the World. In: Entrepreneurs in Family Business Dynasties. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-319-13918-0_1

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