Justin Craig, PhD, Associate Professor of Entrepreneurship, Associate Editor, Family Business Review, D’Amore-McKim School of Business, Northeastern University talks about recent academic research on family businesses.
Family businesses weathered financial crisis better than non-family businesses
Most recently, international research from the Harvard Business Review, for instance, has emerged that demonstrates how businesses with family ownership have weathered the recent global financial crisis (GFC) better than businesses that do not have family ownership.
There is certainly international evidence that family businesses weathered the GFC better than non-family businesses. There is also evidence to support the conclusion that family businesses’ “patient capital” approach provides a safeguard in times of economic downturn. The sector’s contribution to the Australian economy includes the promotion of the benefits of a risk adverse, long-term approach to investment and business profitability. While its effects cannot be measured on available data, the committee considers that it is an approach that the broader economy would be well-advised to consider.