Numerous studies conducted over the years have found that family businesses have a competitive advantage over non-family-owned companies.
So what characteristics do family-owned business possess that give them an edge over their non-family counterparts?
A few of the key aspects from these studies and surveys are as follows:
- Teamwork. Well-functioning families are a natural team. Their goals and values are often in alignment, giving them the ability to make decisions faster and adapt to sudden changes more quickly.
- Innovation. Family businesses are viewed as having more of an opportunity to reinvent their business as each generation comes into leadership.
- Trust. The general public tends to view family businesses as more trustworthy. Also, employees of a family business tend to trust the owners more than their non-family counterparts.
- Sustainability. With family legacy as an ongoing motive, these businesses are often more prudent about their decision making and are more focused on long-term goals.
Of course, a family business ripe with conflict is likely to be at more of a disadvantage than its non-family peers. So it begs the question – do family-owned businesses really have an advantage over non-family companies? I’ve decided this topic requires some additional research of my own – so stay tuned!
Steven E. Staugaitis is a director at Kreischer Miller and a specialist for the Center for Private Company Excellence. Contact him at Email.
What do you think? Do family businesses have an advantage? Share in the comments.
