The importance and responsibility of the family business as a generator of employment

According to the data provided by the Family Business Institute, 89% of all companies are family-owned in Spain, creating 67% of private employment and responsible for 57.1 of the private sector’s GDP. In the European Union, it is estimated that there are 14 million companies that are family-owned and that generate more than 60 million jobs in the private sector. And in another reference market such as the US there is an estimate of 80% of family businesses generating 50% of private employment.

And now I wonder, are we taking good care of the family business in Spain?

As the largest generator of employment in the country and therefore of wealth, we all have a great responsibility with family businesses. Both members of the same starting with the founders and family as the consultants and advisors that we provide our services for their continuity.

In our blog we will be addressing issues and questions in the family business and we will start with what surrounds the succession. There are no magic formulas but there is a lot to learn from the experience of others. From his successes but above all from his failures as a source of inspiration for what not to do.

When do we plan the succession?
How and with whom do we plan it?
How does our successor have to be?
What virtues must it have?
Ways to retire, what are the roles of the founder or predecessor?
Questions to ponder by the founder
How should relationships be between family and company?

Are we looking for alternatives by selling to another company or investment fund? A strategic partner? A merger?

At Pulchra, our relationship with our clients in each of our areas is reinforced by the deep knowledge and experience of our partners in family businesses. Members of family businesses, founders of startups, consultants and advisers of family business clients, we provide a broad vision with the necessary empathy to work for a successful succession for the continuity of the company.