Family Business

In family businesses, there is a creative co-evolution between two differently structured systems – the owners’ family and the owners’ business. Both systems influence one another considerably. Over time, the business develops family-like patterns and the owners’ family is partly moulded by the business.

Our research focuses on the special success factors of family businesses caused by this co-evolution. Is the family a special resource due to this structural union and, if yes, under which conditions? What are the risks of such a connection?

During our research, we found that there is a thin line between risk and return in this type of business. Over time, advantages can turn into risks. For example, intuitively managed family businesses are often particularly capable of greater success. However, they often fail because of the question of succession.

A particularly interesting research topic related to family business is the effect of change in business financing (Basel II). These new bank regulations on equity capital can have dramatic effects on loans granted and, subsequently, on external financing of family businesses.