ENTR 3P98 Chapter 1: Chapter 1
16 Feb 2012
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Chapter 1 - the nature, importance and uniqueness of family business. ownership control (15%+) by two or more members of a family or a partnership of families. strategic influence by family members on the management of the firm. Business owners make up 17. 9% of the population, yet account for 25% of all income and own 56% of all wealth. Family businesses are the backbone of the world s economy and account for 80 98% of all businesses in the world s free economies. The source of private capital and new ventures. *of the 286 million entrepreneurs worldwide who launched new ventures since the mid-nineties, only 19,000 were financed by venture capital firms. *the equity raised through venture capitalists represented only billion, versus the billion provided by family and friends. Family-controlled firms in the s&p 500 achieved 53% greater economic value added than their management-controlled counterparts.
