Does childhood socialisation impact one’s entrepreneurial intentions? Let’s discuss… Entrepreneurs can often expect a lower income than their corporate counterparts. Since therefore entrepreneurship is not an obvious economic choice, there must be other, non-pecuniary motivators at play for those who choose to follow this route.
A large minority of family businesses have, at some point in their business, made use of investments from high net worth individuals (HNWI) and other family business investment pools. According to our recent Family Business Global Survey, some 42% of family businesses have previously received direct investment from these sources.
Mortality is a given faced by everyone, but how each of us deal with that knowledge and possible attendant anxiety can be very different. In terms of business – family-owned or otherwise – it is important that this fact be dealt with in a healthy, direct and timeous manner.
Passion and vision are two characteristics that make a good leader, but when not tempered by humility, any vision a leader has will ultimately fail at the hands of those feeling they are being pushed along a path they either don’t agree with, or aren’t comfortable with yet.
All employees have their individual emotions – what can be termed “personal emotions” – and dealing with those affecting workplace dynamics is of course important, but lesser understood and therefore addressed are the shared workplace emotions – what can be termed “collective emotions” – which can negatively impact the execution of a new business strategy.
When it comes to long-term goals, family businesses generally have fairly ambitious growth plans. A quarter of those surveyed in our KPMG Family Business Global Survey said that acquisitions are their most important funding need, 18 percent said expansion into new geographies, and 16 percent said new sectors.
Like any other business, family owned ones need capital. Unlike companies following a more public business model though, family businesses are inherently restricted on where to seek capital, due to their unique stipulations.
With the recent focus on family constitutions (also known as “charters” or “protocols”); some business families feel that these are magic formula that will help them stay in business together, forever, no matter what.
There’s a common misconception that family businesses seem to be entirely self-financing and therefore self-sufficient. Our survey did find that the opinion towards financing did differ slightly between the different countries
Deciding that it’s time to sell your business is a big decision all by itself, but unfortunately, it’s only just opening the floodgates to many more decisions – all revolving around the question of how the business will be sold.
KPMG Family Business Global Survey
KPMG Family Business Think Tank
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