The contribution of family businesses to wealth creation, wealth preservation and wealth distribution globally is commendable, and their unique approach of looking at their businesses over generations and as an investment for the future ensures a long- term perspective with respect to decision making and provides stability to the economy. Now, the paradigm shifts on the regulatory, operational and technological fronts are driving family business heads to continuously innovate their products or services and become more perceptive and agile in order to grow. The unquoted companies across Europe, are about 70-80 per cent of enterprises are family businesses.
Most family businesses inherently display characteristics of entrepreneurship, dynamism, resilience, sustainability, innovation, vision and more. Study shows family business makes up half of the listed firms, and three quarters of all firms, accounting for one-fourth of total employment, and one-fifth of GDPs. Up to 90 per cent of worldwide GDP is generated by family businesses. Their importance has increased during the period studied.
The research will focus on study of family business in contribution of GDPs and economic development. The process will show interconnection between globalization and family business. The research will identify the theories of how small businesses expand globally, what are the key players supporting businesses in their expansion, how new research and innovations impact businesses, what are the strategies they need to follow or they are following to sustain in the competitive environment.
Moreover, the study will illustrate how various key actors, including those from the informal sector, government sector and non-government sector are perpetuating the current system of policies into everyday challenge, innovations, strategies and have an impact on gross domestic product (GDP). The biggest barrier among family-firm internationalization scholars is that family management discourages internationalization. This is because selling abroad is said to require more specialized managers and more resources than selling at home, and yet family firms are unwilling to recruit non-family managers with the required international skills and to dilute their control to obtain the necessary finance. The research will add to the literature by including all listed firms and by investigating a longer period than has heretofore been reported and analyze the proportion of family business and its contribution to employment and gross domestic product (GDP).
The results are intended to contribute towards identifying different forms of authority whether policies encouraged or discouraged the growth of family businesses along the lines of institutionalization, legalization and participation. The research will also identify the sources of access to finance, use of business support, capabilities, and obstacles to business success.
The overall objective of this study is to explore the actual contribution of family-owned enterprises to the economic development globally and find the more scopes for the further development of family-owned enterprises by reducing the existing limitations. Additionally, the study will provide recommendations for creating a sustainable global competitive environment for family businesses in current and future scenario.
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