A recent study by Nicolas Kachaner, George Stalk and Alain Bosch published in Harvard Business Review (Nov. 2012) indicates family-run businesses have an innate advantage over other models. Looking across business cycles from 1997 to 2009, the study cited seven reasons family businesses outperformed their counterpart nonfamily enterprises:
They’re frugal in good times as well as bad.
They maintain a high bar for capital expenditures.
They carry little debt.
They make fewer — and smaller — acquisitions.
They incorporate a surprising level of diversification.
They’re more international.
They retain talent more effectively than their competitors