Angela Pike-Bowles *
Department of Applied Management, Administration and Ethical Leadership, University of Fort Hare, South Africa.
Juliet Townes
Department of Applied Management, Administration and Ethical Leadership, University of Fort Hare, South Africa.
In this post, we present a brief overview of our recently published book chapter titled “A Qualitative Exploration of Risk Management Strategies in Family Businesses”
A family business is a profitable business in which many generations of a family are linked by blood, marriage, or adoption. These family members have the power to influence the business’s vision and achieve diverse aims within the business. According to Baggio and Valeri, family members are leaders or owners of the business. Even if the income is high, a family business is still in its beginning if all the shares are held by one person. The ownership circle may include family members, investors, and employee-owners. Non-family members who work for the family business are often included in the management circle.
Family businesses are essential since they link financial and social wealth. These businesses pursue a combination of both business and family goals, which usually overlap. Among these non-economic objectives is the preservation of socioemotional wealth, which represents the non-economic rewards that owners of family firms obtain from their businesses. Family businesses dominate the global economy and contribute to the economies of both developed and developing countries. Family-owned businesses account for over 80% of all businesses and are the most common form of business organisation worldwide. Family businesses exhibit a flexible approach to technological shifts and greater adaptability to customer requirements, and their business structure enables quick decision-making.