Conclusion

Abstract

Family businesses are complex structures; they have to reconcile and create equilibrium for the needs of four different interest levels: family, ownership, management and the individual. Over time, the needs of these four stakeholders change and evolve, thereby creating the need for a new equilibrium. Most family businesses experience difficulties in finding an effective approach in creating the new equilibrium, which results in high financial and human opportunity costs. The nine award-winning family businesses provide insights and examples for meaningful and effective solutions. Most importantly, they actively developed the next-generation leaders. This is by far the most important strategic decision a family — as business owners — faces in regard to sustaining the family business.