How Family Businesses Thrive in Uncertain Times

It’s often seen that the family business has the in-built ability to sustain through uncertainties. The research confirms that family businesses are able to adapt and sustain uncertain times better than any other business type.

Here are my observations on what helped the family businesses to emerge through the pandemic.

1. Long term Outlook and Stability:

The nature of the family businesses is to look for long-term sustainable solutions than short-term gains. The non-family businesses are more focused on today and work on their short-term goals. The family businesses look at their past and the future as well. They work on long-term value for their customers and their strategies are aligned to that. This helps them to sustain and move through the uncertainties.

2. Financial backup

It’s often seen that family businesses are able to manage the economic turbulence with their financial backup. During the crisis, the families are able to come together and invest their wealth and use the family resources to save and sustain the business. The stability and agility help the businesses to respond faster and handl

e the uncertainties better than other businesses.

3. Commitment:

The level of commitment is generally high in the family business. The failure in the family businesses not just impacts the family wealth tied in the business but also the identity and the prestige of the family. Since the business is identified with the family, they have a high level of commitment and dedication. This becomes a compelling reason for family leaders to work together to move through the tough times.

4. Emotional connect to the business:

Family businesses have a strong foundation and history of entrepreneurship experience. The entrepreneurial drive of the innovative founder becomes an inspiration to their family members. The emotional connection created within the family leaders becomes a huge asset during economic challenges. They know the family history; they feel responsible for contributing to the business and are willing to work together to create the legacy.