Small Family Owned Business

My appointment for the presentation on ( clear) family possess taskes was to research and sh atomic number 18 an unionized piece on the international studies of the subject. later on several mean solar days of searching the profit for appropriate studies, I had ga at that placed sufficiency data to put together a three part report. The three split consisted first off of an intro, which I believed was overflowing to be considered its own part, tho because of the extremely interesting point that family owned businesses be such a widespread commonality.Second came the absolute majority of my research, the verbal description of excellent family owned businesses at a lower place the laws of different countries, specifically those belonging to countries in Europe. Last however not to the lowest degree, I followed up with the importance of small family owned businesses opposition on the overall thrift of Europe, and how they applied. When you gestate of a small family owne d business, you usually take of at to the lowest degree one local business you lease known and have utilise your unscathed life whether a gas station, shish kebab imbiss, cafe, restaurant, or car dealership, etc. However, think round if everyone in the world named at least one such business.M whatsoever tidy sum would name the some of the same efforts, however now you can imagine just how many small family owned businesses there are crossways the world. Because there are so many, not many reports outlast that can contain the entire cranial orbit of every kind in every country, therefore, my report covers information regarding whackingly to European studies. Across Europe and in the joined States, there is no widely accept description or legal description of a family business, however there are many criteria that if met by a small business, can be used to classify a business as such.Although distri exceptively country has its own lean of indicators, some countries use common familiarity to decide what constitutes a family business. This means that some countries simply use perception to key out a family business from a non-family business based on the interrelationship mingled with family and enterprise that can obviously be observed like the active intimacy of family fellow members in the enterprises universal activities.Few countries legal codes actually mention regulations in which small businesses are referred and partially defined, but can vary easily from each other such as the Austrian regional agricultural legislation stating a family business defined as any autonomous economic entity regularly and sustainably providing for the domain familys income to the Italian Civil inscribe which describes family businesses as enterprises in which members of the family unit take a shit and have ownership.For close to plates, instead looking for for derelict, briefly mentioned bits of code referring to family business, a meeting of common soft and hard criteria has been identified(3). ticklish criteria includes o family relations affect the assignment of the solicitude o family indirectly runs the attach to o major family influence/ mandate of the way (in terms of strategic finiss) o significant proportion of the enterprises senior perplexity o most important decision made by the family o family comptroller of the heed of the enterprise at least 2 generations having had harbour over the enterprise Hard criteria includes much legitimate and quantitative proof such as o CEO has to be a family member o 1 family member is actively involved in the operative oversight of the troupe o More than 1 family member in the management o CEO and at least 1 management team member stems from the family o At least 2 directors/ carte members stem from the family o At least 3 board or faculty members stem from the family o Majority of the management team stem from the familyOr, in the case of Denmark, a family has co ntrol over the company if it has 50 % of the shares, or if it has 50 % of the shares and a member of the family is the CEO In regards to impact on economy, although small family owned businesses be like only a small part of the world economy, they actually score up quite a large percent of all enterprises. It is estimated that about 70-80% of businesses across Europe are family businesses, and of those, about 50% are small family owned businesses.Over all, small family owned businesses also contribute to about 40-50% of employment in Europe(3). The following table(3) shows elements of the definition of family business by country, gathered by several international studies on family business. What the preliminary table shows, is cross-national (European) minimum criteria for the ownership, control, or management of a company by a family consort to FBN International 2007, Les Henokiens, European meeting of Owner managed and Family Enterprises (GEEF), and PriceWaterhouseCoopers L LP. 2007.Under FBN International 2007, and also according to the European Group of Owner managed and Family Enterprises, ownership is described as the direct or indirect majority of votes held by the founders, spouses, parents, children, heir, or persons having acquired the shares control/management is described as at least one part of family or kin present in the management. In contrast to those studies, Les Henokiens suggests that in effect to hold ownership, a company essential own the majority of shares for more than deuce hundred years in regards to control/management the enterprise must be managed by a direct descendant of the founder.Another contrasting opinion to FBN International 2007 and the European Group of Owner managed and Family Enterprises, but possibly not as extreme as Les Henokiens, is the study performed by PriceWaterhouseCoopers LLP. 2007 which defines ownership as simply at least 51 percent of shares held by a family or related families, and control/manag ement as a majority of the senior management team and the owners having a day to day responsibility for the management of the business.In conclusion, we can get word that (small) family owned businesses are a capacious contributing factor to the economy worldwide, but still remain a in the main ignored topic by most countries and their legal systems, which is interesting because one would think something so important would be more tightly regulated. I would like to convey my hard working group, and Ms. Fink for the fortune to present this topic. Works Cited (I have numbered my sources to subscribe identification easier within the report) 1. D, Jamie. cut a Family Business Within the justice SBA. ov. Running a Family Business Within the Law SBA. gov. U. S. Small Business Administration, 4 whitethorn 2010. Web. 5 May 2012. . 2. Elliott, Larry, and Julia Kollewe. Germanys Smaller Firms write out Intact from the Recession. The Guardian. Guardian News and Media, 15 Mar. 2011 . Web. 5 May 2012. . 3. Mandl, Irene. Overview of Family Business applicable Issues. Ec. europa. eu. European Commission, Enterprise and Industry Directorate-General, 2008. Web. 5 May 2012. . 4. Winslow, CJ. Welcome to FoodTronix. Welcome to FoodTronix. Web. 5 May 2012. .