Key figures according to ifm Bonn`s definition of a family business It makes more sense than making a strict separation between family and non-family businesses to talk about the degree of family influence. Family influence can be exerted through different dimensions. These include, for example, voting rights, positions on the supervisory board, management positions, but also a particular family business culture that develops over time. Especially in the case of large listed companies, it often happens that the family is no longer present in the management of the company. However, thanks to the company`s actions and positions on the supervisory board, families can continue to exert a great influence on the company (see, for example, the influence of the Quandt/Klatten family on BMW). A large number of scientific studies on listed family businesses, especially in the American context, often assume that a family is at least a family. must own 5% of the company`s shares to be classified as a family business[4]. European studies often work with different definitions that require 20% and 25% ownership by the family respectively[5]. These definitions often include so-called “founder-led businesses.” On the other hand, small and medium-sized enterprises that depend on another company do not meet the definition. Definition of SMEs by the Mittelstand Research Institute, Bonn: Learn more about this definition, its basis and our research results on the thematic pages. Definition of SMEs by the European Commission: “According to the Commission Recommendation of 6 May 2003 (Recommendation 2003/361/EC), which since 1 January 2005 replaced the previous Recommendation (96/280/EC), companies with According to the Institute of German Economics (IW), family businesses – including very large companies in Germany – generate a higher average return, but with an average capital ratio of 16%, they have a lower capital ratio of 16%. Equity coverage like other companies with 22%. [28] The update is irregular because it takes a lot of time.

The 500 family businesses with the highest turnover in the world are listed in the Global Family Business Index[23], first published in 2015 by the Center for Family Business at the University of St. Gallen and Ernst & Young. In this index, family businesses are private companies in which a family holds at least 50% of the voting rights and listed companies in which a family holds at least 32% of the voting rights in the company, on the other hand. In addition to the narrow definition of IfM Bonn, there are other definitions with less stringent criteria. For example, the Foundation for Family Business definition also includes certain businesses where there is a separation between ownership and management, but as long as the business is controlled by a manageable number of individuals or families[3]. In addition to the aforementioned ownership and management structures, the Association of Family Entrepreneurs considers the unit of risk and responsibility as the most important feature of a family business, since the entrepreneur pays for business decisions with his own capital. In Switzerland, 88% of companies are family businesses, the majority being small and medium-sized enterprises. On the Swiss Stock Exchange, 30% of companies are dominated by family. The “family phenomenon” on the stock market goes back to the so-called “vinculated registered shares”.

Since these shares have relatively more voting rights associated with a share than normal shares, family influence is ensured despite lower capital shares. In 2008, the largest unlisted family businesses were the DKSH Group, Tetra Pak (Switzerland) Ltd. and the Hilti Group. [33] A central theme of family businesses is business succession. It can be assumed that 18.5% of all companies will face this task within 5 years. In the scientific field, the Center for Family Business at the University of St. Gallen[34] deals with family businesses (national and international). The DAXplus Family 30 index tracks the development of publicly traded family businesses in which the founding family holds at least 25% of the voting rights or sits on the executive board or supervisory board and holds at least 5% of the voting rights. It includes German and international companies of the Prime Standard of the Frankfurt Stock Exchange. [22] Despite this great importance to the economy, scientific concern about family-owned or family-controlled businesses has only grown in recent years. Family businesses include the Munich-based “Stiftung Familienunternehmen”, the Stuttgart-based IFF Institute for Family Businesses, the “Institute for Family Businesses” of the WHU Otto Beisheim School of Management in Vallendar, the Witten Institute for Family Businesses at the University of Witten/Herdecke, the SME Research Institute Bonn (IfM), the Hamburg Institute for Family Businesses and the Friedrichshafen Institute for Family Businesses.

family businesses. Family business. The terms family businesses and small and medium-sized enterprises (SMEs) are expressions of the generic term mittelstand. In practice, many small and medium-sized enterprises are organised into family businesses, but the two terms are defined differently. Research on family businesses is stimulated by the International Family Enterprise Research Academy (IFERA[43]) and the Family Enterprise Research Conference (FERC), among others. [44] The International Council for Small Business and Entrepreneurship (ICSB) and its European arm, the European Council on Small Business and Entrepreneurship (ECSB), also call for research on family businesses. The most important journals focused on family businesses are Entrepreneurship Theory and Practice, Family Business Review and the Journal of Family Business Strategy. The Witten Institute for Family Businesses provides an overview of international research institutions active in the field of family businesses. International research in the field of family businesses is strongly conducted by the Family Firm Institute (FFI), which not only owns the family business journal, but annually awards prizes for dissertations, working papers, reviewers and published articles in the field of family businesses[45]. Research on family businesses is stimulated by the International Family Enterprise Research Academy (IFERA[46]) and the Family Enterprise Research Conference (FERC), among others. The International Council for Small Business and Entrepreneurship (ICSB) and its European arm, the European Council of Small Business and Entrepreneurship (ECSB), are also calling for research on family businesses.

The most important journals focused on family businesses are Entrepreneurship Theory and Practice, Family Business Review and the Journal of Family Business Strategy. [47] The Witten Institute for Family Businesses provides an overview of international research institutions active in the field of family businesses. International research in the field of family businesses is strongly conducted by the Family Firm Institute (FFI), which not only owns the Family Business Review, but annually awards prizes for dissertations, working papers, reviewers and published articles in the field of family businesses[48]. Contrary to popular belief, family businesses are also an important phenomenon on the German stock markets. Half of the companies listed on the CDAX – with the exception of financial securities – are actually family businesses. [30] Overall, IfM Bonn classifies all enterprises as family businesses where enterprises with fewer than 250 employees subject to social security contributions employ more than 71% of all trainees. However, the number of trainees in micro-enterprises has been declining for years, while the number in large enterprises is increasing. In total, more than 19 million employees are employed in SMEs, or about 55% of all employees. Since the qualitative characteristics of medium-sized enterprises (type of management, ownership and economic independence) are not taken into account in official statistics, IfM Bonn calculates the economic importance of SMEs on the basis of the definition of SMEs.

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