How family enterprises create value
A vital project for the present and the future that can help family enterprises reach ever new heights of success. STEP – Successful Transgenerational Entrepreneurship Practices.
STEP – Successful Transgenerational Entrepreneurship Practices
For the past five years researchers and practitioners across the globe have been working together on the STEP project to try to find answers to the question - how do family firms create value across generations? The project was initiated by Babson College (Massachusetts, U.S.A.), a global leader in teaching entrepreneurship and the research is a collaborative effort between Babson and more than 33 partner universities and 125 scholars.
So far 75 families from across the world have participated in the project, but it is still growing and it has now been joined by Thailand.
Already there are many findings that will be helpful to anyone involved with a family enterprise. Over the next few months this column will share this wisdom, which has been distilled from the experiences of family enterprise around the globe.
To be included in the project, families must meet these criteria:
- The family must be active in management of at least one operating business so that we are not only looking at liquid or passive shareholding families.
- Family ownership in the main operating business must be above 50 percent voting shares to significantly control the strategic direction of the firm.
- At least family member from a second successive generation must be involved in ownership and/or management.
- The family has a transgenerational intention, that is, an ambition to pass on the business to the next generation of family members.
In the STEP research project the story of every participated families is are recorded, following a common research methodology. This includes personal interviews and collecting of information through secondary data sources, such as web sites, annual reports and media articles. After conducting the interviews, a case study report of 30-50 pages is written up for each family firm.
These case studies are then used to develop lessons on the practical problems facing family enterprises right across the world.
Examples of the lessons:
Switzerland – focus on long-term success
Sweden – effective communication within a family
Malaysia – relationships and resources within families
Germany – self-assessment for family entrepreneurs
It is good news to know that the project is now underway in Thailand where virtually the leading enterprises in the country are still, or began as successful family enterprises. The project is a joint cooperation between Babson College, Bangkok University and Bangkok Bank and the knowledge gained in the project will be used to help both individuals and society as a whole.
TOOLS & ASSISTANCE
We are ready to help you.
TOOLS & ASSISTANCE
We are ready to help you.
This Website uses cookies to provide you with the best experience and to improve the Bank’s website services in order to better serve your requirements. You can find the details about cookies use on
Cookies Policy
