Family business an empirical analysis of their performance and ownership structure - Essay Example

ta connected with this has been presented in this paper along with the analysis to identify how the markets have performed in the United States and elsewhere. Founding Family Controlled Firm (FFCF) was expected to be down and the general conception is that they might not grow beyond a specific size2. But with clear targets and achievable ones being laid out, these firms have been consistently producing results3. This has resulted in more investor confidence. Sharon Nelton also points out that the second generations managers of the Family have seen to that the companies have grown manifold and investments from others were solicited.

These FFCF businesses have repeatedly achieved rapid growth over a period of time. This has primarily happened because of the smaller decisions making tree which helps in swift and strong decisions. This way the company was able to respond to market situations swiftly resulting in better bottom line. In addition to these, the FFCFs are mostly professionally supported. They do employ professionals to be as consultants resulting in getting the right kind of employees for their growing business.

Therefore, it was no surprise that the companies with a dynamic manager at helm could bring about rapid changes in its structure resulting in swift growth4. The same way, there has been consistent performance betterment wherever there has been a committed leadership in these companies. The performance of the companies typically, in the case of young founders was also analyzed and the reasons behind growth of the companies have to be studied. In order to ensure that the companies are appropriately studied data of various companies fitting into the cross section of FFCFs with younger founders and those FFCFs with descendant leaders in the organizations helm were taken up.

This would throw a new light on the working of the FFCFs. For the purpose of our study, a business is considered family business if the controlling interest in the firm is held by