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Special Edition

Family Enterprise "Movers and Shakers"  

 March 2012

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Michael Worley

Families in Business -- For the Long Term

Michael Worley

A family-run business is typically one in which more than half the shares are controlled by members of the same family, or one that has been passed between generations.

Starting, leading and working in a family business can bring valuable benefits compared with other businesses - from greater trust between staff to increased flexibility.

 

I remain convinced that the private family business model - provided it works in a particular company with the family concerned - is by far the best management model available. Long-termism and personal commitment is very important in commerce and the local social environment. We are not vulnerable to the high salary/bonus culture of many shorter-term managements. Ultimately, it is the market which determines survival, or otherwise, of particular companies.  (Read more from Michael Worley and add comments.)  Michael Worley is a Past President of the Board of European Family Businesses, and is Chairman of William King Ltd.

Jes�s Casado

Relying on Long Term Ownership to Secure the Future of Europe

Jesus Casado 

 

Europe, today, is not only facing a financial and economical crisis as the rest of the world, but a political and spiritual one as well.

 

Long term vision, sustainable economic growth and solid values are needed to give Europe again the energy and the universal purpose to build a suggestive project of common life.

 

Family businesses are the main asset on which the European economy can rely for recovery. They are the backbone of the EU's real economy and the basic form of entrepreneurship. If Family Businesses do well, not only productivity, competitiveness and job creation are guaranteed, but as well, the traditional values of patient capital will return. European Family Businesses (EFB), as the organisation representing all family businesses in Europe, is working to make this happen.  (Read more from Jesus Casado and add comments.)  Jes�s Casado serves as Secretary General of European Family Businesses.

Greetings!

This issue of the Family Business Wiki newsletter is about a remarkable story.

 

It is a story of European family business leaders coming together -- across many countries and many years -- to systematically influence governmental policy makers in support of long-term family business entrepreneurship.  The focus has been on:  legal and administrative issues, fiscal issues, education, corporate governance, and ownership structures.  Their success has been nothing short of remarkable.

 

European Family Businesses is an umbrella federation for national family business associations in Europe.  It advocates for coordinated action by the European Union and its member states regarding policies which support the long-term success of family enterprise.

 

Each of the contributors to this newsletter has served a leadership role in European Family Businesses.  They are among the select "Movers and Shakers" of family enterprise in Europe.  Family Business Wiki thanks them for sharing their perspectives with our readers, and applauds them for their very significant achievements.

Thierry Lombard 

The Pledge 

  

Thierry LombardThe world forces us into a constant balancing act, as we strive to fulfill our (political, economic, financial, and especially social and environmental) responsibilities. Yet, society also stumbles from one crisis to the next, and often lays the "blame" at other people's doors.

 

Fortunately, In Family Business, we meet responsible businesspeople every day, remarkable families committed to their companies and their community, capable of meeting all these new challenges, as well as young people keen to learn and make the most of their future, and senior citizens happy to pass on their experience to the next generations.

 

It's not easy to explain this intricate structure made up of family, family company, shareholders, and managers. The deep structural changes in our society cloak our future in uncertainty. Yet, in the face of this challenge, our long-standing "family business model" holds its own and teems with potential.

 

Let's endeavor to publicize this model, boost its reputation, and raise awareness of its unique management approach. Allowing us to tackle and resolve the conflicts that we run up against, while supporting our desire to pass on this increasingly important legacy to younger generations.  (Read more from Thierry Lombard and add comments.)   Thierry Lombard serves as Chairman of the Board of Family Business Network International (FBN-I), and is Managing Partner at Lombard Odier.   

Philip Aminoff 

Putting Family Businesses on the Political Agenda

  

Philip AminoffIn the last few years, policy makers in Europe have gradually come to realise that Family Businesses are the backbone of the economy and that political decisions need to take into consideration the likely effects on the family business sector. How did this happen?

 

Definition of Family Business

Political discourse requires a shared understanding of the topic. In order for the family business sector to be able to become an agenda item, the concept of 'Family Business' had to be defined.

 

The first attempt at a definition to support political decision-making was developed by a working group set up by the Ministry of Trade and Industry of Finland in 2005. Within the next few years, this definition had been adopted by a good number of Family Business organizations worldwide.


In 2009, a slightly modified version of the 2005 definition was agreed unanimously by a family business expert group summoned by the European Commission. This was quite remarkable in that the group consisted of experts from no less than 27 countries.  (Read more from Philip Aminoff and add comments.)  Philip Aminoff serves as President of the Board of European Family Businesses, and is Chairman of Electrosonic Group Oy Ab.

Peter von M�ller 

Despite the Slowdown of Economic Activities, German Family Entrepreneurs Remain Cautiously Optimistic

  

Peter von MoellerFamily businesses make up more than 60% of all European companies. In Europe they are a vital part of the European economy. These businesses tend to think in terms of generations: they want their children and grandchildren or other family members to keep their business going. By increasing the number of small, medium-sized and large family-owned companies, and their share of the gross national product, greater economic stability could be achieved. Even though the term "medium-sized companies" is not synonymous with the so called "middle class", it is in a way true that the internal stability of a society is to a great extent dependent on that "middle class". What do I mean by this? Family entrepreneurs do not think solely in terms of financial quarters, as it happens to be quite often the case in companies managed by employed executives. The financial world has often accused family businesses of staidness and low profitability. Yet in the current financial crisis, the reality is just the opposite: As an example take German economic and labour market data. They would not look as positive compared with other economies if the German economy did not consist of a large number of owner-managed medium-sized companies.  (Read more from Peter von Moeller and add comments.)  Dr. Peter von M�ller serves as Vice-President of European Family Businesses, and is Chairman of M�llergroup.
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