Family Entrepreneurship : Insights From Leading Experts on Successful Multi-Generational Entrepreneurial Families

This book provides recent ideas, insights, facts, evidence, frameworks, and perspectives on how and why entrepreneurial families are successful over generations. The book focuses on how families successfully implement entrepreneurship across generations. That success, it argues, requires entrepreneurship at the level of the family, not only in the businesses the family owns and manages. Written by noted academics and consultants who are authorities on family entrepreneurship, the chapters provide a comprehensive exploration of the characteristics of successful entrepreneurial families, their motivations, how they behave over time, and, suggestions for how business families can encourage and sustain entrepreneurship. This comprehensive look at family entrepreneurship will serve as a fundamental reference text for family business consultants, owners, and scholars. Contents Notes on Contributors List of Figures List of Exhibits List of Tables 1: The Secrets of Successful Entrepreneurial Families: Insights from the World’s Experts on Multi-Generational Entrepreneurial Families Introduction Reference Part I: Characteristics of the Entrepreneurial Family 2: Family Capital: The Key to Entrepreneurial and Family Success Model of Family Capital Family Structure Family Culture Family Activities Family Trust Repairing Interpersonal Trust Repairing Competence Trust Repairing Institutional Trust Family Capital Transfer Activities The Outcomes of Family Capital Conclusion References 3: The Essential Role of Trust in Family Business Entrepreneurship Trust: What Is It? Building Entrepreneurial Trust Ability: The Skill to Succeed and Risk of an Assassin Benevolence: The Care and Concern for the Family and the Risk of the Schlemiel Integrity: Principle-Driven Leader or the Risk of the Zealous Martyr Broken Trust References 4: Managing Legacy, Achievement and Identity in Entrepreneurial Families A Framework for Success in Family Firms Lessons from Field Research Identity Questions and Tensions Making Family an Identity Workspace Conclusion: Achieving an Entrepreneurial Legacy Coda References 5: Discerning the Importance and Nature of the Family System in Relation to the Family Firm: A Paradigm Shift Introduction Defining the Family Firm Purpose and Objectives The Importance of the Family System in Relation to the Family Firm Conceptual Frameworks of the Family Firm The Sustainable Family Business Theory The Sustainable Family Business Theory Constructs The SFBT Sustainable Family Business Theory Assumptions Entrepreneurial Value Creation Theory in Relation to the Family Firms The Unique Nature and Dynamics of the Family Firm Prevailing Family Firm Myths The Dilemmas of the Prevailing Family Firm Myths Exemplar Nexuses Between Family and Entrepreneurial Firms The Secrets or Hidden Truths of the Family Firm The Challenge of a Paradigm Shift Implications for Researchers Implications for Practice The Implications of a Paradigm Shift References Part II: Preparing the New Generation of Family Entrepreneurs 6: Can Entrepreneurship Be Continued from One Generation to the Next? The Answer to that Question Can Be Found in the Socialization Process Socialization Socializing Entrepreneurship Conclusion References 7: Tilling the Soil—And Wait and See How the Next Generation Develops Introduction Why it is So Important That No Coercion is Used How to Cultivate the Field in a Way That Promotes Entrepreneurial Mindsets of the Next Generation without Putting Pressure on Them How Wide the Range of Harvest Results from the Cultivated Field Can Be Conclusion References Part III: Developing Entrepreneurial Leaders 8: Sustaining a Multi-Generational Family Enterprise Through Ambidextrous Leadership Introduction Explorations Exploitations Concluding Insights 9: The Importance of Externally Focused Self-awareness to Family Entrepreneurship Externally Focused Self-Awareness in the Family Business Linking Family Entrepreneurship to Self-awareness What is the Antidote for Low Self-awareness? How Do We Get There? Developmental Conversations Conclusion References Part IV: Advancing Family Entrepreneurship 10: Antecedents to Entrepreneurship: How Successful Business Families Nurture Agency and Kindle the Dreams of the Next Generation Agency Within Family Enterprise Modeling Conveying an Honest Family Narrative Persevering Together Nurturing and Giving Permission to Dream Fostering Curiosity Conveying Scarcity in a Context of Abundance Entrepreneurship Funds: At the Right Time and in the Right Way... Entrepreneurial Challenges Ahead References 11: Who Do You Think You Are? Who Do They Think You Are? The Golden Cage and the Silver Spoon The Golden Cage of the Successor’s Social Representation National Newspapers and Metaphors Largo Winch BD: The Everyday Life of a Family Business Successor Becoming Who You Want to Be or Who They Want You to Be? The Next Generation Entrepreneur in Practice Conclusion References 12: From Family Businesses to Entrepreneurial Families: Tacit Knowledge at the Core of Entrepreneurial Learning The Family as an Entrepreneurial System Tacit Knowledge and Entrepreneurial Learning References 13: The Successor Conundrum: A Moral Dilemma No Room for Rebels Impossible Emancipation? What About Entrepreneurship? References 14: Family Entrepreneurship Education: Where Are We? Where Do We Need to Go from Here? Introduction Where We Are Now Where We Should Go from Here Conclusion References Part V: Establishing the Entrepreneurial Family 15: Intrapreneurship: A New Lens on Developing Capability in the Rising Generation Introduction Why Intrapreneurship Matters to Family Enterprises Intrapreneurial Capability in a Family Enterprise The Need for a Broad-Based View of Intrapreneurship The Importance of Development How to Build an Intrapreneurial Skillset Individual Dimension Family Dimension Ownership Dimension Business/Industry Dimension Becoming an Intrapreneurial Learning Family Where to Start 16: Gathering Multiple Generations at the Dining Room: The Secret Toward an Entrepreneurial Family Continuity Secret 1: Identify Next Generation Intrinsic Motivation to Develop or Participate in Entrepreneurship Projects Secret 2: Take Advantage of the Genuine Motivation of the Entrepreneurial Family Leader for the Firm Growth and Leave a Legacy Secret 3: Change your Mindset as a Leader of the Entrepreneurial Family (from One Man Band Controller to Mentor Orchestra Director) Secret 4: Empower the Rising Generation (Boost Your Self-Esteem and Show Results) Secret 5: Create a Space for Transfer Knowledge Among Generations Secret 6: Establish the Strategic Role of Facilitating and Accompanying Secret 7: Incorporate Innovative Learning Tools and Activities for the Creation of Entrepreneurial Family Value Secret 8: Create or Participate in a Formal Transgenerational Entrepreneurship Learning Program for Your Business Family In Practice Pre-Hispanic Corporation Conclusions References 17: Two Sides of the Same Coin—How Intra-Family Communication Affects Entrepreneurial Spirit over Generations in Family Businesses Introduction Intra-Family Communication Behind the Business—Two Sides of the Same Coin Practical Implications Practical Takeaways for Business Families Conclusion References 18: The Family Business University: How to Live, Create and Tell Your Family Business Story Introduction Putting the Family in Family Business The Family Business Incubator Storytelling Learning Business The Imprinting of Entrepreneurship Learning Your Family Business—The Family Business University Concluding Remarks References Part VI: Fostering Family Entrepreneurs 19: Nurturing the Next-Generation Family Entrepreneurs in the Business Family TPB and Business Family Entrepreneurship Developing Efficacy Through Mentoring The Who of Mentoring the NGFE The How of Mentoring the NGFE Beyond Mentoring Epilogue Implications for the Business Family References 20: Upping Your Family’s Entrepreneurial Game Communicate Your Stories Well Establish Structures Before You Need Them Calibrate Your Support Test for Viability Offer Benefits Beyond Money Give “Boosts” Without Micromanaging Give Space Support Aspiring Entrepreneurs Who Want to Flourish on Their Own Allow an Intrapreneur Breathing Room Allow Them to Fail Conclusion Case Study: A “Pot of Gold” with Rules and Communication The Story What They Did What They Learned What We Advised Questions for You to Consider Part VII: The Future of Family Entrepreneurship 21: Fostering Entrepreneurialism and Intrapreneurialism Within the Family Enterprise System Enterprising Families in Times of Change and Disruption Growing Desire of Enterprising Families to Foster Entrepreneurialism Trend 1: Fostering Entrepreneurialism and Intrapreneurialism Within the Family Enterprise System Trend 2: Engaging with the External Entrepreneurial Ecosystem Five Mechanisms of Fostering Entrepreneurialism and Intrapreneurialism Within the Family Enterprise System Illustrating Family Entrepreneurialism, Family Intrapreneurialism, and Engaging with the External Entrepreneurial Ecosystem: Case Studies Mechanism 1: Family Entrepreneurialism. Association Familiale Mulliez (AFM) Mechanism 2: Family Intrapreneurialism. De Agostini Mechanism 3: Family Investments in the External Ecosystem. Pentland Group Lessons Learned 22: From Allocators to Acquirers: The Family Investing Model and Transgenerational Entrepreneurship The Dual Challenge of Business and Family The Family Investing Model How Families Are Getting It Right Alignment Around Purpose and Process Investment Focus Governance & Operations The Challenge of Expectations Management Best Practices in Family Investing A Path to Transgenerational Entrepreneurship References 23: Because Family Cares: Building Engagement for Family Entrepreneurship Through Sustainability Introduction Family Venturing Sustainable Venturing and Entrepreneurial Families Igniting Family Entrepreneurship Through Sustainability Interplaying Between Family Entrepreneurship and a Purpose for Sustainability Interfacing Between Family Entrepreneurship and Social-Ecological Systems Conclusion References 24: Social Capital, Entrepreneurship, and Family Businesses Introduction Social Capital: Tenets and Key Issues Social Relationships to Social Capital Linking Social Capital to Entrepreneurial Outcomes Multi-level and Boundary Considerations Social Capital Tactics for the Entrepreneurial Family Business Internal Tactics External Tactics Conclusions References