The long and storied history of family-owned businesses, FOBs, comes with facts, myths and old tales, many of which are not easily disaggregated or detangled. In many instances, myths are quoted as facts and facts are pushed aside as myths.
Many of the statistics and proclamations being bandied about have given credence to the one of the laws of propaganda attributed to Nazi Joseph Goebbels: “Repeat a lie often enough and it becomes the truth”. In the quest to understand and to optimise the benefits of FOBs, it is important to try and separate facts from myths.
Space will allow the delineation and the attempt to debunk four of the common myths, which, if left untouched, could impede the progress and standing of FOBs. The list below is a mix of facts and myths linked to FOBs, and I wonder how many persons could correctly identify which is which, before completing the reading of this article.
1. Family businesses do not survive beyond three generations;
2. Over 70 per cent of micro, small and medium enterprises in the English-speaking Caribbean are FOBs;
3. Family businesses are the purview of particular race/ethnic groups;
4. A large percentage of the world’s wealth is created by family-owned businesses;
5. Family businesses are internally focused and do not benefit the economy over the long run;
6. Over 70 per cent of businesses worldwide are categorised as FOBs;
7. On average, the level of education among family members is lower than non-family members in FOBs;
8. In many countries, family businesses outperform non-family businesses.
If you ticked even numbers as facts and the others as myths, then welcome on board, as we try to dispense many of the myths associated with FOBs. Space will allow the coverage of only two of the most common myths in Jamaica.
Article & Photo from: The Gleaner