Family Business - Studies on Emotional Ownership

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| Family Business | studies on Emotional Ownership | | Katarzyna Jaszkiewicz | | | 1. Family business – What is it? There is no easy way to express what Family Business mean. There are a lot of companies which consider themselves as a family business despite that in their board all the members of original family are gone or they are not involved in the ownership. For some people the definition is as broad as ‘every business which consider itself as a family business’ . Which means that every business involving ‘family ethos’ can be regard as a family business. If we are searching for a more narrowed definition here it runs among those lines: * The family owns majority of the voting shares or controls the business * More than one generation is or will be in the future involved in the business and * At least one family member or it’s spouses is effectively involved in the management of the business The second point is extremely important in defining the family business. This is how we differentiate owner-managed business form family-managed business. In case of owner-managed business the business is not necessarily inherited by the next generation , which is a basic foundation of family business. When we study the business on stock exchange. What defines those business as a family once is the amount of voting shares that family holds. It has to held at least 25 % of shares if the rest of the shares are in hands of smaller minority shareholders. Family business are very diverse in their size and shapes. The economy knows the examples of big international companies hold by more than one family as well as small enterprises focused on a small local markets existing through centuries. This shows that family business market is very random and a lot of those business have very little things in common. 2. Family businesses
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