However, studies have shown that Family Businesses have actually out performed, grown faster and are more resilient than Non Family Businesses (Fernández-Aráoz, Iqbal, Rittter, 2015). It is said that Family Businesses are more receptive to growth because they have one aspect that Non Family Businesses do not have to offer in their lineup of success. This factor is family gravity. While Non family and Family Businesses share the need for strong governance, high-potential executives and succession plans, it is the family gravity that helps the Family Businesses take one step ahead. For further explanation, family gravity is the idea that Family Businesses have one to three key family members in the organization that give the business its identity and align the differing interests (Fernández-Aráoz, Iqbal, Rittter, 2015). Ease of Succession One of the biggest ways succession in family business is different than in a regular business, is that in regular business, the most qualified person would take on the ownership. In family business, the struggle is between having the owners closest relative take over the business, simply because they are their relative or having the most qualified person
However, studies have shown that Family Businesses have actually out performed, grown faster and are more resilient than Non Family Businesses (Fernández-Aráoz, Iqbal, Rittter, 2015). It is said that Family Businesses are more receptive to growth because they have one aspect that Non Family Businesses do not have to offer in their lineup of success. This factor is family gravity. While Non family and Family Businesses share the need for strong governance, high-potential executives and succession plans, it is the family gravity that helps the Family Businesses take one step ahead. For further explanation, family gravity is the idea that Family Businesses have one to three key family members in the organization that give the business its identity and align the differing interests (Fernández-Aráoz, Iqbal, Rittter, 2015). Ease of Succession One of the biggest ways succession in family business is different than in a regular business, is that in regular business, the most qualified person would take on the ownership. In family business, the struggle is between having the owners closest relative take over the business, simply because they are their relative or having the most qualified person