Family-Owned Companies Around the World

When a customer is shopping for goods or services, they want to work with someone they can trust. That being said, they look for certain qualities that make that company stand out from the crowd. And one of those leading qualities revolves around being family-owned.

Given that most of us trust our family members and consider them as key members of our lives, customers feel that a high-quality business is one where those same family ties are involved. But have you ever really thought in-depth about what makes these companies so great?

In this post, we'll discuss what it really means to be family-owned, the benefits that these businesses offer, and we'll also give examples of some successful family-owned businesses around the globe, including some details on how they operate.

What Does "Family-Owned" Really Mean?

A family-owned business generally is defined as a business where the majority of ownership members are a part of the same family. Many companies vary in terms of how many family members actually own the business, but a family-owned business typically involves at least two members that are a part of the same family. A family-owned business may be the oldest form of business organization—dating back to when farms and local businesses were in abundance. Today, family-owned businesses are becoming far less common, but there are still many of them that still thrive in society today.

Benefits

Choosing a family-owned business can provide many advantages. Below you'll find the many benefits of family-owned businesses:

• Higher Level of Commitment

Given that family-owned businesses typically work with members of their own family, these companies seem to have a higher level of commitment to the business. And given that the success of the family has strongly depended on how well these employees perform, these members are typically more committed than the standard employee.

• More Trust

Another benefit of a family-owned business involves an extra layer of trust. Given how these businesses typically don't have a conglomerate of employees with all different backgrounds, that can add more trust for the customer. While a lot of family-owned companies don't only have family members working the day-to-day functions of the business, if the owners are of the same family, that can show that the big decision-makers form a special bond that only a family can share.

• Built on Strong Relationships

If business owners are of the same family, chances are that they had to really grind to get where they are today. They probably had a lot of ups and downs with their family, but they reached success by staying together and making it through. That being said, those experiences can form a strong bond with one another, which can show in how they treat their employees and run the company as a whole.

Family-Owned Companies Worldwide

While you may be aware of the family-owned companies in your city or around the United States, there are tons of successful family-owned businesses around the globe. In fact, some countries heavily rely on family-owned companies for the success of their economy. If you view the list compiled by Family Capital, then you'll find that many of the top family businesses in the world are based in other countries. Take a look at the companies below that fall into the top 50 of the list, and who aren't based in the United States:

• Volkswagen AG (Germany)

• Exor NV (Netherlands)

• Schwarz Gruppe (Germany)

• BMW AG (Germany)

• Tata Sons Ltd (India)

• LG Electronics Inc. (South Korea)

• Anheuser-Busch InBev SA/NV (Belgium)

• Foncière Euris (France)

As you can see, there are many top family-owned businesses overseas that are doing pretty well for themselves. However, many family-owned businesses are having their own set of challenges as the world is expanding in new and innovative ways. Keep reading to learn more about the landscape of family-owned businesses in a few other countries, including what makes them succeed and what their futures hold.

China

With a country so focused on traditional methods, the Chinese economy still heavily relies on family-owned businesses. As soon as new family members enter the world, they are being raised to work and eventually own the family business. Although some United States families still follow this path, it seems to be far more common in China. However, the new age of business is taking China by storm.

As the country is trying to rival the economy of the United States, China is becoming more focused on the new wave of tech-driven businesses. As the old Chinese business titans are nearing closer and closer to retirement, many of them don't have a solid plan to pass over to the next generation. But as an effort to keep the family business ties alive and have it succeed for many generations to come, many young business owners are working with their elders to come up with innovative, tech-driven plans to succeed in the ever-changing landscape of society. But despite these changes, the Chinese economy, which is the second-largest in the world, is still growing. And this growth has lead to many family-owned businesses that gross billions every year. Some of China's most successful family-owned businesses include Midea Group, Country Garden Holdings, New Hope Group, and BYD.

India

India is a country that heavily relies on family-run businesses. In fact, nearly 90% of businesses in India are in the hands of family members. Some of the leading family-owned businesses in the country include Tatas, Ambanis, Birlas, Godrej, and Wadias. However, similar to China, India also sees some challenges when it comes to succession planning. This is due to the following reasons:

• Many businesses are involved in trade-related activities overseas, which exposes them to local and overseas liabilities.

• People of Indian origin living in the USA and inheriting assets in India are potentially exposed to global taxation.

Europe

While other countries have an economy that thrives off family-owned businesses, Europe might rely on these businesses the most. In fact, according to Europe Family Businesses, this category accounts for 40-50% of all jobs involved in European private employment. Furthermore, these businesses provide a natural incubator for fostering the next generation of European entrepreneurs. And one of the leading countries to keep an eye on in regards to family businesses and entrepreneurship is Germany.

According to Camden Wealth, 41% of all large companies in Germany are family-owned. In fact, some of the world's most successful family-owned companies make their home in Germany, including Volkswagen, Aldi, Henkel, and Bertelsmann. But why so much success? Many think it's because of their rich history and culture. In the decades following 1945, Germany was a war-torn country that was focused on a major rebuild. However, this lead to a huge growth period that saw many family businesses thriving, especially with exports. Furthermore, tax incentives were used by the German government to encourage growth in a variety of markets. This is mainly the reason why Germany is home to a manufacturing sector that largely trumps the United Kingdom's. However, Germany faces many of the same challenges that other countries are forced to deal with.

All over the world, family businesses are thriving, changing, and dealing with the challenges that are presented by our tech-driven youth. But one thing still holds true: the strong grasp that family businesses hold on the world is still very present in society today.

THE COMPLETE RANKING IS AVAILABLE HERE AT DIANA RESEARCH AS A LIST IN EXCEL FORMAT. IN ADDITION TO THE ADDRESS DETAILS, TURNOVER AND EMPLOYEE DATA, THE RANKING ALSO INCLUDES A DESCRIPTION OF THE PARTICULAR FIELD OF EACH COMPANY AND INFORMATION ON ITS YEAR OF FOUNDATION, DIRECTORS AND STRUCTURE OF OWNERSHIP.