First Faculty Advisor
family; owned; family-owned; business; management
Family-owned businesses represent the majority of business in the United States. As consumers and employees, we are compelled to their sense of trustworthiness that all too often disappears in the business world. Our economy depends on the success of family-owned businesses, but only one third of these organizations successfully transition to the second generation and only one in ten survive to the third generation. While a series of best practices attempt to prescribe solutions their challenges, these practices fail to account for the various types of family-owned businesses. More specifically, many types of family-owned businesses exist as evident by specific transitions in terms of ownership, family and business. Therefore, the study of best practices in family firms must consider the timing of implementation. This study analyzes three family-owned businesses that successfully transitioned from start-up businesses owned by a single controlling owner ready to give up control to an expanding business owned by a sibling partnership with young children. From this analysis of a specific type of family-owned business, six common practices emerged.