Family Businesses: Dear Relationship

Dr. Tom Rüsen of the Witten Institut for Family Business (WIFU) comments in Spiegel Online on the risks of relationship in business life. “The family is the greatest strength, but also the greatest risk for the enterprise.” Especially the topic ‘Succession’ bears much potential of conflict. Only 10 to 15% of family enterprises persist up to the fourth generation. The other enterprises are sold or go brankrupt. The reason of this failure are often quarrels within the family. “Up to 90% of the conflicts center on succession”, according to Rüsen. The conflict is already brewing if for example the legacy will be divided differently among siblings.

The whole article (in German only) can be found here.