In the UK, for example, family companies account for almost 40% of private sector employment, and create 25% of the country’s GDP. And in the US, the ties are even stronger – 80% of all businesses are family enterprises, and they generate 60% of the country’s employment. In Asia’s emerging markets family businesses are seen as a major driver of economic development by being better providers of public goods than local governments. The list goes on.
But that doesn’t mean doing business with your nearest and dearest is always easy. While running a family business certainly comes with its own benefits, it also comes with its own potential problems- which can have considerably greater consequences than an argument over whose turn it is to do the washing up. So what are the key dos and don’ts of keeping a business in the family?