Analysis and review of Marrianne Bertrand's The role of family in family firms - Essay Example

Specifically, Mr. family business patriarch, A. Rothschild, trustingly sent his loyal son, Nathan, to manage the family’s opening up of a new London business branch (Bertrand & Schoar 76). In terms of managing the Rothschild family businesses, Mr. Rothschild had more trust over his personally trained son compared to trusting on a complete stranger managing the London branch. Mr. G. Angell espoused the successful family businesses are each generation’s inherited companies that must be protected and handed over to the next generation’s new family-based management officers (Bertrand & Schoar 75).

Family members treat the businesses as a trusted responsibility. In terms of the second point, family business organizations are more stable than non-family business organizations. The Walton family runs the globally successful Wal-Mart store chain (Bertrand & Schoar 74). The Murdoch family profitably continued its News Corporation business (Bertrand & Schoar 74). History affirms family businesses are more stable than non-family business. Culture emphasizes the prioritizing the families’ control over its business ventures (Bertrand & Schoar 79).

The stability of the Rothschild family led to the accumulating a huge amount of wealth for the family’s Western business ventures. The Rothschild’s banking, and other financial segment wealth helped contribute to the making and dethroning of leaders and kings, including Napoleon’s Waterloo defeat (Bertrand & Schoar 73). Vanderbilt’s family business help accumulate huge wealth from the railroad and shipping business segments (Bertrand & Schoar 73). Family businesses successfully flourished in Europe, Africa, Latin America, Asia, as well as the Middle East (Bertrand & Schoar 74).

As proof, more than 64 percent of Argentina’s top 20 biggest business firms are classified as family businesses (Bertrand & Schoar 74). In terms of