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Canada (161,877)
ENTR 3P98 (6)
Chapter 1

Chapter 1

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Department
Entrepreneurship
Course
ENTR 3P98
Professor
Teresa Menzies
Semester
Winter

Description
CHAPTER 1The Nature Importance and Uniqueness of Family BusinessA family business is a synthesis of 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 Concern for family relationships The dream of continuity across generations Business owners make up 179 of the population yet account for 25 of all income and own 56 of all wealthEconomic Impact of Family Businesses Family businesses are the backbone of the worlds economy and account for 8098 of all businesses in the worlds free economiesIn Canada Family BusinessesGenerate 60 of the GDPEmploy more than 6 million Canadian employeesMake 55 of all charitable donations The Source of Private Capital and New Ventures Of the 286 million entrepreneurs worldwide who launched new ventures since the midnineties only 19000 were financed by venture capital firms The equity raised through venture capitalists represented only 59 billion versus the 271 billion provided by family and friendsFamily Firms Outperform Familycontrolled firms in the SP 500 achieved 53 greater economic value added than their managementcontrolled counterpartsFamilycontrolled firms had a 665 greater return on assets in EBITDA termsCanadian Business Statistics80 of all firms in Canada are family ownedOf these 184 million family businesses Ontario and Quebec have the greatest shareOntario is home to nearly 700000 family firmsQuebec has roughly 366000 family businessesAverage family business employs 18 peopleTotal annual sales of Canadian family businesses is estimated to be 13 trillionThe Bad News In their first 5 years of operation approximately 85 of entrepreneurial and familyowned companies disappearAmong those that survive only 30 are successfully transferred to the second generation of the foundingfamily owners
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