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.

Read the article at New Zealand Herald →