Family Business

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Family business is a business in which, one or more members within the management team are drawn from the owning family. Family businesses can have owners who are not family members. Family businesses may also be managed by individuals who are not members of the family.
However, family members are often involved in the operations of their family business in some capacity and, in smaller companies, usually one or more family members are the senior officers and managers. Many businesses that are now public companies were family businesses.Family participation as managers and owners of a business can strengthen the company because family members are often loyal and dedicated to the family enterprise.
However, family participation as …show more content…

The purpose of those definitions is not only the classification of legal entities in terms of regulation but also about the possibility to create strong companies with long tradition.

Importance of family businesses for the national economy

The family business has huge importance for the national economy because it contributes to the reduction of the rate of unemployment, the increase in GDP (gross domestic product), and brings additional financial means for the family members involved in the activities. The family business also creates a tradition for the future generations and over time opens the possibility to build a strong brand, which can be recognized on the domestic as well as on the foreign markets, by protecting its traditional heritage and following the technical and technological developments over

In Germany About 95 % or three million of all German enterprises are family enterprises in the sense that a family or a single person controls the enterprise and a member of the family or the single person in question also manages the enterprise. These enterprises employ 13,4 million or 57 % of all German employees and earn 1,9 trillion € or 42 % of the German turnover.

In Macedonia, most of the family businesses are small and medium sized enterprises although any

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