Developing the Family Businesses: the Global Experience

Abstract

The article is aimed at analyzing the global experience in the organization and development of family businesses in the modern economic environment. The global experience in the development of family businesses is considered. It is defined that in Ukraine family businesses are not considered promising, they operate with little or no external support, in the conditions of «independent swimming», there is neither legislative, nor economic substantiation for an efficient development of a family-run business, even though it has significant success in European countries, does exist for a long time and passes on the inheritance to more than one generation. Both the positive and the negative features of family businesses are defined. It is noted that the family businesses are able to maintain high «buoyancy» in an aggressive environment and successfully compete, in most cases family relationships also allow to be stronger. A family can combine their properties by forming start-up and investment capital, which is important in the initial and the breakthrough stages of business development. The world’s largest family businesses are considered. It is determined that nowadays they are the mainstay and driving force of the economy.

Keywords

• family businesses
• family relationships
• inheritance
• owners
• managerial decisions