This presentation is about the origin of family business.

1. ORIGIN OF FAMILY BUSINESS

2. • An important role in employment, income
generation, and wealth accumulation.
• The definition does transfer through time and space .
• Crucial feature is the extent to which a family is able
to mold company decisions.
INTRODUCTION

3. CULTURAL ARTIFACT
• Ownership related.
• Emotional bonding.
• Three crucial elements .
• Changes through the life cycle.

4. RISE OF THE MANAGERIAL CORPORATION
•
• Family business is a hindrance rather than an asset in
modern economies.
• Dislike of losing personal control.
• Limited resources.
• Requires three-pronged investment.

5. AS AN INSTITUTION
• Formal and informal set of “rules of the
game”.
• Development of laws change through time.
• Crucial role of women.
• Intermarriage.

6. INDUSTRIAL DISTRICTS,NETWORKS
AND FAMILY FIRMS
• Relationship between ID and family firm.
• Family firm, the basic building block of ID.
• Idea of labor division and specialization.
• Fundamental differences.

7. STRENGTH AND WEAKNESSES IN
HISTORICAL PERSPECTIVE
• WEAKNESSES:
- Relationship between a founder and his family.
- An intensely emotional one, can be a major
source of conflict.
- Conflicts surrounding leadership succession.
• STRENGTH:
- Social networks of the founder
- An important dimension of leadership
succession.
- Stability

8. THANK YOU