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Article: Wealth generation: family businesses are the key to unlocking the full potential of the region's emerging economies, says David Pistrui of Acumen Dynamics.(BRIEFING: FAMILY BUSINESS)
- Article from:
- MEED Middle East Economic Digest
- Article date:
- April 15, 2005
- Author:
CopyrightCOPYRIGHT 2005 MEED Middle East Economic Digest. All Rights Reserved. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The family and its kinship network are the central elements powering the socio-economic system in the Middle East. The family business is the engine that drives economic development and wealth creation around the world, and the ability to foster an entrepreneurial mindset across generations is a major element of their continuity and longevity.
Although they are the backbone of all market and most developing economies, family businesses are delicate beings. Entrepreneurial-led family firms only have an average lifespan of about 24 years. Only 30 per cent survive into the second generation, 10 per cent into the third and a mere 3 per cent into the fourth. Over the ...