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The Family Council HandbookStages of Family Businesses and Types of Family Councils

The Family Council Handbook: Stages of Family Businesses and Types of Family Councils [A business that was started twelve years ago by a thirty-eight-year-old entrepreneur with children who are now seventeen, thirteen, and ten does not need the same family business governance forum as a third-generation business family with thirty-five shareholders in two generations who do not work in the business. While the entrepreneur might use a family meeting to hold discussions about the parents’ expectations of the children, the third-generation business family might discuss the issue of how the second generation will be asked to participate in teaching values and business history to the fourth-generation teenagers. Since business families vary greatly in size and configuration, we need a way of categorizing them. Family businesses are often classified as (1) first generation or founder firms, (2) sibling ownership or partnership, or (3) family dynasty or cousin consortium.1 These classifications serve us well for identifying the predictable issues arising in each stage. Also, for a complete discussion of the challenges faced by founders, siblings and cousin transitions, please see the notes at the end of the book.2] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

The Family Council HandbookStages of Family Businesses and Types of Family Councils

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References (5)

Publisher
Palgrave Macmillan US
Copyright
© Palgrave Macmillan, a division of Nature America Inc. 2012
ISBN
978-0-230-11219-3
Pages
19 –35
DOI
10.1007/978-1-137-00052-1_3
Publisher site
See Chapter on Publisher Site

Abstract

[A business that was started twelve years ago by a thirty-eight-year-old entrepreneur with children who are now seventeen, thirteen, and ten does not need the same family business governance forum as a third-generation business family with thirty-five shareholders in two generations who do not work in the business. While the entrepreneur might use a family meeting to hold discussions about the parents’ expectations of the children, the third-generation business family might discuss the issue of how the second generation will be asked to participate in teaching values and business history to the fourth-generation teenagers. Since business families vary greatly in size and configuration, we need a way of categorizing them. Family businesses are often classified as (1) first generation or founder firms, (2) sibling ownership or partnership, or (3) family dynasty or cousin consortium.1 These classifications serve us well for identifying the predictable issues arising in each stage. Also, for a complete discussion of the challenges faced by founders, siblings and cousin transitions, please see the notes at the end of the book.2]

Published: Feb 2, 2017

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