Running Business Lessons from a Family Venture
In today's dynamic business landscape, family businesses continue to play a significant role, especially in regions where entrepreneurship is thriving. According to HSBC research, 56% of entrepreneurs in these regions come from a business-owning background.
One such success story is ENOVA Energieanlagen GmbH, a family-owned company that has been pioneering in on- and offshore wind energy since 1989. ENOVA has successfully developed and managed wind parks, supplying green electricity to 600,000 households in Germany. With plans to invest 600 million euros by 2026, the company aims to continue its contribution to a greener future.
Masterflex, recognized as one of the strongest family businesses in Germany in 2025, is another example of a family business thriving due to its financial stability and innovation. Sitex ranks 53rd among the top 100 German family companies, noted for its performance and innovation.
In the UK, there are 4.7 million family-run businesses, employing 12.2 million people. These businesses contribute £460 billion to the country's GDP. Notable family businesses like Gerresheimer and the family-led Seaman Paper Company have made significant innovations in packaging technologies, including digital tracing and sustainable materials.
The stereotype of family businesses being handed down from eldest son to eldest son like a pocket watch is almost non-existent now. Businesses that thrive over time are those that can promote a dialogue between the best ideas of the past and of the future. It is critical for the older generation to recognize that those that follow may wish to do things differently and to encourage fresh thinking.
Bernard Rennell, the Global Head of Family Governance and Family Enterprise Succession at HSBC Private Banking, emphasizes the importance of family businesses thinking strategically not just about the business, but about the business of the family. He believes that family businesses should be understood as the exemplar of business.
Younger entrepreneurs also emphasize the need for their business to generate social value, defining success in terms of a positive impact on society rather than just the bottom line. A family business, which can accommodate young and old alike, is ideally placed to profit from the wisdom of different generations.
Family businesses put structures and processes in place to manage the cross-currents of loyalty and emotional investment. Developing decision-making processes that allow the enterprise to remain agile and focused, even as the family grows with each generation, is crucial.
In many parts of the world, the family business model is prevalent, including in high growth economies such as mainland China, Hong Kong, Singapore, and the Middle East. Bernard Rennell, based on his experience advising family businesses for over two decades, believes that a family business, which can accommodate young and old alike, is ideally placed to profit from the wisdom of different generations. Businessmen and women often have an innate understanding of their family business due to being familiar with it since childhood.
In conclusion, family businesses continue to be a significant force in the global economy. By embracing change, encouraging fresh thinking, and maintaining a focus on both business and family, these businesses can thrive and make a positive impact on society.
