familyrun

Familyrun, commonly written as family-run, refers to a company in which the majority of ownership and management responsibilities are held by members of a single family. Such firms can range from small shops to multi-generation enterprises and exist in many sectors, including retail, agriculture, manufacturing, and services.

Typical features include involvement of family members in key decision-making, succession planning across generations, and a culture shaped by family values and reputational concerns. Governance often blends informal practices with formal structures, and non-family executives may be hired to professionalize management. The longevity and continuity of leadership can be a strength, but succession planning is critical to continuity.

Advantages include strong commitment, customer loyalty, long-term orientation, and flexibility for local adaptation. Drawbacks can include resistance to change, nepotism concerns, tension among family members, and potential difficulties in attracting external capital and professional staff, especially when governance is concentrated within the family.

Globally, family-run firms make up a substantial portion of the economy, particularly in small and medium-sized enterprises. They can foster regional stability and transfer of knowledge, but may face challenges in scaling and governance as the business broadens beyond local markets. Professionalization, transparent governance, and clear succession plans are common strategies to sustain family-run enterprises over generations.

See also: family business, family-owned business, succession planning.