3 ms·
family owned businesses usually are asset rich, "rarely" cashflow/cash rich (when they are they tend to increase a lot good/bad capital expenditure and lifestyl
by kwere 4y ago
family owned businesses usually are asset rich, "rarely" cashflow/cash rich (when they are they tend to increase a lot good/bad capital expenditure and lifestyle , as decisions are shared). Two different things. Culture in a co-owned business is often more rewarding /enjoyable/ flexible (not often a good choice) than being an employee or a funded entrepreneur. Passing the torch is also a big factor of personal pride. Economically is probably not often that smart as skills are not usually transferable. Better to build a career base outside and join later or biuld a trade inside (management skills also if medium enterprise). At least this is my experience as 3rd generation "small" business heir in europe.
- Jugurtha 4y agoFor more context on the reason "small" is put in quotes in the parent comment, "small business" or "small and medium-sized enterprises" definitions vary from country to country. A "Mittelstand" is defined as annual revenues up to 50 MM Euro and a maximum of 500 employees. https://en.wikipedia.org/wiki/Mittelstand https://en.wikipedia.org/wiki/Mittelstand https://en.wikipedia.org/wiki/Small_and_medium-sized_enterprises https://en.wikipedia.org/wiki/Small_and_medium-sized_enterpr... [French for SME]: https://fr.wikipedia.org/wiki/Petite_ou_moyenne_entreprise https://fr.wikipedia.org/wiki/Petite_ou_moyenne_entreprise