Global family enterprises are a large contributor to the world economy and, according to PWC's 2021 Family Business Survey, family businesses are estimated to contribute more than half of GDP and two-thirds of employment globally. In Canada, The Conference Board of Canada's research found similar results for Canadian family-controlled businesses.
"In the best of times, the strengths of family businesses are often overlooked as unicorns take flight and the stock market follows. But when times are tough, the strong fundamentals that are their hallmark—commitment to values, long-term thinking, sensible leverage—are what recoveries are based on. It happened in 2009 after the financial crisis when family businesses rebounded to build back opportunities in a shattered world economy. And it will happen again in the post–COVID-19 recovery for two key reasons: family businesses are more trusted than other institutions and leaders, and, in most sectors, they are more resilient."
- PWC's Family Business Survey
However, the words of an old proverb "from shirtsleeves to shirtsleeves in three generations,” which refers to the inability of successive generations to hold onto the wealth created by their grandparents, hangs over the world's highest net-worth families, threatening the continuation of family legacies. Surprisingly, it is estimated that only 10% of family enterprises exist past the third generation.
Typically, this is not due to a bad business model or lack of financial resources, but appears to be a result of these three key issues:
Family Enterprise Foundation (FEF) is a Canadian charitable organization focused on promoting the success and sustainability of entrepreneurial families and their enterprises across generations. FEF recognizes that through family-focused educational resources, relevant family enterprise research, and the promotion of a dynamic ecosystem, families can leave the proverb behind. FEF’s goal is clear: help families thrive.
As a family enterprise itself, Viewpoint Group recognizes the value of the work that FEF is doing in the community and is proud to support its initiatives.