Top Ten Family Business Facts | Fact #1: Economies Around the World Depend on Family Businesses

Economies around the world depend on family businessesDid you know that the success and growth of your family business matters to many people? In fact, your country’s economy may depend on it.

Statistics show that family businesses are predominant throughout the world (López de Silanes, La Porta, & Shleifer, 1999) and contribute the most to the growth of worldwide economies. For more details, read Family Firm Institute's Global Data Points article.

A recent study by Memili et al. (2015) examines the impact of the prevalence of Family Small and Medium-Sized Enterprises (SMEs) on economic growth at the state level in the USA. It suggests that the proportion of Family Small and Medium-Sized Enterprises (SMEs) will have an inverted U-shaped relationship with economic growth. Stated differently, there is an optimum level of Family Small and Medium-Sized Enterprises (SMEs) in a local economy. Up to that point, which is about 42.8 % of the Small and Medium-Sized Enterprises (SMEs) population, an increasing proportion of family firms have a positive influence on economic growth. However, beyond that point, more and more family firms in the economy appear to reduce economic growth.

Lesson #1: A balanced combination of family and non-family Small and Medium-Sized Enterprises (SMEs) is more conducive for maximizing economic growth than either type of business. Therefore, your family business plays an active part in promoting your country’s economy.

To review the full Top Ten Family Business Facts by Rania Labaki and to access a list of original resources, please visit our Family Business Facts page.

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Rania Labaki – Author Bio

Rania LabakiRania Labaki has developed a unique mix of academic and practical knowledge throughout extensive experience with leading international organizations specializing in family business education, networking, advising and research.

Along with a Ph.D. in Management Sciences from the University of Bordeaux, Rania Labaki holds the Family Firm Institute’s (FFI) Certificates in Family Business and Family Wealth Advising.

Currently an Associate Professor of Management at EDHEC Business School, she teaches and conducts research at the intersection of the fields of finance, entrepreneurship and family business. She also serves as Academic Director of the Family Business Global Executive MBA and member of the Family Business Centre. Her recent research interests revolve around the relationship between the family’s emotional dynamics and the entrepreneurial and financial behavior of family businesses.

Prior to joining EDHEC Business School, Dr Labaki was Associate Professor of Management and Director of the Finance and Wealth Management Master Program at the University of Bordeaux in France. She was also Visiting Scholar at Baruch College – The City University of New York and at Zeppelin University in Germany.

As academic expert of Family Business Network (FBN) International, Rania Labaki served as Chair of the International Family Enterprise Research Academy Conference in 2012 and as Program Committee Chair for the Family Business Network – Next Generation International Summits since 2012. She contributes to the Next Generation Committee in terms of program content development and facilitation for the international conferences and support for the strategic activities focused on education, research, networking and entrepreneurial initiatives.

Rania Labaki is an active member of several organizations, including Family Business International Foundation (FBIF), Family Business Network France Scientific Board (FBN), Women in Family Business Advisory Committee and Family Business Review (FBR), Journal of Family Business Management (JFBM) and Journal of Family Business Strategy (JFBS) Editorial Review Boards.

Author of many academic papers, book chapters and professionally-oriented articles on family business, Rania Labaki currently serves as Co-Editor of Entrepreneurship Research Journal, positioned as the premier new research journal within the field of entrepreneurship; She was also a Guest Editor of the Entrepreneurship Research Journal for a special issue on The Emotional Dimension of Organizations in 2013; Academic Chair of The International Family Enterprise Research Academy (IFERA) 2012 Conference (France), and Program Committee Chair of Family Business International Next Generation (FBN-NxG) International Events 2012 (Germany), 2013 (USA), 2014 (Spain), 2015 (Colombia), 2016 (Sweden)

Her 13-year teaching experience spreads across continents as guest or visiting professor in universities in China, Bulgaria, Germany, Morocco, Tunisia, USA and Brazil, in the same line than her academic advising experience with organizations such as Family Business Network (FBN) in Switzerland, Pacific Asia, Germany, North America, Colombia, India, Spain, France and Business Families Foundation (BFF) in Canada.

 

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