The document discusses four studies about family businesses:
1) A study of Spanish family-owned supermarkets that found they greatly impact Spain's economic growth through job creation and GDP contributions.
2) A study of Filipino-Chinese millennial attitudes towards succession in family businesses that found birth order and trust in successors influence willingness to take over the family business.
3) A discussion of the world's most powerful business dynasties including Walmart, Volkswagen, Berkshire Hathaway, and Ford, all owned by wealthy families for generations.
4) A report found family businesses dominate the Philippine economy, comprising 99.6% of businesses and growing faster than other Asian countries.
The document discusses four studies about family businesses:
1) A study of Spanish family-owned supermarkets that found they greatly impact Spain's economic growth through job creation and GDP contributions.
2) A study of Filipino-Chinese millennial attitudes towards succession in family businesses that found birth order and trust in successors influence willingness to take over the family business.
3) A discussion of the world's most powerful business dynasties including Walmart, Volkswagen, Berkshire Hathaway, and Ford, all owned by wealthy families for generations.
4) A report found family businesses dominate the Philippine economy, comprising 99.6% of businesses and growing faster than other Asian countries.
The document discusses four studies about family businesses:
1) A study of Spanish family-owned supermarkets that found they greatly impact Spain's economic growth through job creation and GDP contributions.
2) A study of Filipino-Chinese millennial attitudes towards succession in family businesses that found birth order and trust in successors influence willingness to take over the family business.
3) A discussion of the world's most powerful business dynasties including Walmart, Volkswagen, Berkshire Hathaway, and Ford, all owned by wealthy families for generations.
4) A report found family businesses dominate the Philippine economy, comprising 99.6% of businesses and growing faster than other Asian countries.
The document discusses four studies about family businesses:
1) A study of Spanish family-owned supermarkets that found they greatly impact Spain's economic growth through job creation and GDP contributions.
2) A study of Filipino-Chinese millennial attitudes towards succession in family businesses that found birth order and trust in successors influence willingness to take over the family business.
3) A discussion of the world's most powerful business dynasties including Walmart, Volkswagen, Berkshire Hathaway, and Ford, all owned by wealthy families for generations.
4) A report found family businesses dominate the Philippine economy, comprising 99.6% of businesses and growing faster than other Asian countries.
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Foreign Study
Impact of Family Business on Economic Development: A Study of Spain’s Family-owned
Supermarkets (Galvan, Martinez and Rahman, 2017)
Family business pertains to a group of people who are blood-related that has a position or control over the company. It is usually starts on its founders who intend to pass the business on their descendants up to the time where a business dynasty is build. According to Galvan, Martinez & Rahman (2017), family business may have a lot of definitions but it will always have three dimensions: one or several families hold a significant part of the company’s capital, family have also control over the company, and family members usually hold the top management positions. Based on their study, family businesses provide a huge impact in terms of the entrepreneurship and socio-economic development in the most countries. Over two-thirds of the businesses worldwide are believed to be controlled or managed by families’ enterprises taking to account half of the Gross Domestic Products (GDP). In the countries like USA and Canada, family businesses are very prominent. Approximately, 90% of all the businesses there are said to be a family business. In Australia, half of the businesses are owned by a family. On the other hand, other countries like India, family businesses are greatly needed in order for the progression of their own country. It is not impossible that family-owned businesses are really the foundation or what you called the ‘backbone’ of many economies around the world. In Spain, supermarkets are the largest grocery channel where it has a generating sales of 32.5 billion and grew year-by-year by 2.5% driven by eight biggest competitors including Mercadonna, El Corte Ingles, Distributions Froiz, S.A., DIA and etc. Most supermarkets in Spain are said to be family-owned business. For the conclusion, Spanish family-owned supermarkets greatly affects the economic growth of Spain providing different job opportunities and contributing to the GDP of the country.
Local Study
Filipino-Chinese Millennials’ Attitude on Family Businesses Succession
(Adarna, Chen and Hong, 2017)
According to Adarna et.al, the Department of Trade and Industry affirms that 99.6% of businesses in the Philippines are composed of small to medium enterprises, of which between 80%- 90% are family-owned and these businesses are succeeded by the heir of the founders. On the other hand, Chinese businesses are continuously spreading in the Philippines even though they only comprise 1% of the Philippine population. In order for a family-owned business to continuously operate in the future, they will need a successor. Succession is an indispensible concept when talking about family businesses. However, millennial nowadays have their own minds in choosing the path that they want. They want to explore multiple careers, relationships, lifestyle and technologies without committing to any one path too soon. In conducting a survey, they input five main factors that affect willingness to take over mainly, demographics-based perception, divided into sex and birth order, predecessor’s trust in successor’s abilities and intentions, personal needs alignment of successor, and rewards from the business. From that, researchers will be able to determine the perceptions of the students regarding the said topic. They surveyed Filipino- Chinese millennial successors in DLSU to gather information. The result shows that birth order is highly significant where the eldest sibling has the responsibility to take over their family business after pursuing his/her studies. All in all, the five significant factors contribute to willingness and the perspective of the successor about taking over family business is indispensible and over the years, the dynamics of Filipino-Chinese business succession in the Philippines might change.
Foreign Literature
The Most Powerful Business Dynasties: Leading Family Owned Businesses (Ann, 2016)
According to Ann (2016), before the conglomerates and revolutions happened in
th the 18 Century, the presence of family businesses have already taken the world. Over the past years, the success of Business Dynasty is greatly seen because of what it can bring in one country in terms of the economic growth. Up to this day, they are a lot of family-owned businesses that still operating smoothly and wealthily. Based on the Global Family Business Index, several businesses that pass from generations from generations are continuously developing to increase their global presence. Some of the founding dynasties worldwide are Wal-Mart, Volkswagen, Berkshire Hathaway, EXOR, and Ford. These popular businesses are persistently making an incredible work for the reputation not only to for their business but also for their family’s honor. Wal-Mart owned by Walton Family has a revenue of $485.651 billion, Volkswagen owned by Porsche Family has a revenue of $261.6 billion, Berkshire Hathaway managed by Buffett Family earned $182.2 billion while EXOR owned by Agnelli Family has a revenue of $151.1 billion and Lastly Ford, owned by Ford Family has an earnings of $146.9 billion. This proves that business dynasty has a great impact in today’s economy. Local Literature
Family-run Firms still dominate Philippine Business (Francia, 2017)
According to a report provided by Credit Suisse Research Institute, family-owned
businesses continuously to dominate the entire business industry in the Philippines. They also released about the country ranking 11th globally in terms of number of family runs-firms. The research institute classified around 1,000 family businesses and review the investment cases of the firms. The gathered data shows that ever since year 2006, family businesses in the Philippines are dramatically growing by an average of 3.9% every year. It is much faster compared to all countries in Asia Pacific Region except Japan. They also noted that Family businesses are doing a great job in terms of the sales growth and generating revenues compared to non-family owned firms. It seems that the investors are much more concerned on how each family member are involved in the business rather than testing its level of ownership. An average of market capitalization of $5.6 billion are said to be from the family-owned firms making it the sixth country with the highest market cap in Asia Pacific (except Japan) and ranked 25th in the world. Top companies in the Philippines including SM Investments Corporation, Ayala Corporation, LT Group and Aboitiz Equity Ventures are run by families (Francia, 2017).
