Good - But good enough?

Family businesses account for a considerable part of the Swiss economy. More than two third of Swiss SMEs are family-owned. Peter Vogel, Professor of Family Business & Entrepreneurship at IMD, highlights six points that distinguish family businesses and, taken together, make them more resistant to crises:

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ACTING AND PLANNING FOR THE LONG TERM: For family businesses, 25 years is the equivalent of a quarter for a listed company. They really do think long- term.

FINANCIAL STABILITY: Family businesses are, on average, less in debt and therefore more financially independent.

EMOTIONAL ATTACHMENT: The owners’ emotional attachment to the company is usually much stronger than in non-family businesses. This means that in crises everyone rolls up their sleeves.

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SOCIAL COMMITMENT AND PHILANTHROPY:

ROBUST VALUES AND LOYALTY: The value system between owners and employees is also more sustainable. This means that owners’ loyalty to the workforce is high, as is the loyalty of employees to owners.

ENTREPRENEURSHIP: In family businesses, the entrepreneurial spirit reigns

Family businesses are often strongly embedded in their social environment, resulting in increased social commitment and concomitant social loyalty.

supreme. This includes the ability to constantly reinvent itself and to seize entrepreneurial opportunities in times of crisis.

Is family a help in a crisis?

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