Family businesses continue to outpace the global economy as generations take over and create innovative solutions to the changing market. According to a recent report from Credit Suisse Research Institute, family-owned companies outpaced public ones by 3.6% annually from 2006 to 2018.
Family businesses have remained resilient despite the changes in global markets. The success rate of family-owned companies can be attributed to the emphasis on long-term goals, a strong sense of purpose, and the ability to make quick decisions. Family businesses also have the added motivation of keeping the family legacy alive through continued success.
The ability to innovate better than their peers is a hallmark of family businesses. World renowned companies like Walmart, BMW, and Samsung are just some of the family-owned businesses that have succeeded for more than a century.
Staying Ahead of the Game
Family businesses are known to be among the most adaptable businesses in the global market. While the economy fluctuates and industries transform, family businesses can move quickly, adjust to changes in the market, and implement new strategies to keep up with the competition.
These businesses also retain talent longer as a result of their ability to create a strong culture within the organization. This fosters an environment where employees feel valued, contributing to higher productivity and employee satisfaction.
A Legacy of Success
One of the key advantages of family businesses is their unparalleled determination to succeed. With a focus on the long-term, they are more likely to invest in core technology and research and development. This approach facilitates building a legacy of providing value and creating wealth not just for the owners but also for the communities where they operate.
Historically, family businesses have outpaced the global economy in terms of growth, profitability and survival. Despite uncertainty around global economic conditions, family businesses continue to stay ahead of the curve.
Family businesses continue to remind us that there is no substitute for a long-term vision and a strong sense of purpose. With their persistent focus on innovation and the ability to make impactful decisions, family businesses continue to outpace the global economy. As time passes, more and more family-owned businesses will step up and take over the marketplace.