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FAMILY BUSINESS NETWORK
Family businesses
contribute to social stability
Owner families such as the Andersson family of Mellby Gård almost
always naturally take a long-term approach. United families who think in
terms of generations and not quarters become owners with a clear vision
who build and develop viable businesses, according to Annelie Karlsson,
CEO of the Family Business Network.
Family Business Network is a Swedish organization that advises “Those who make it past the third generation often set up a system
and supports family businesses on issues related to family, of selecting ownership representatives based on competence, which is
enterprise and ownership. one of the major challenges in later generations,” she says. “When you
“We’ve worked with owner families for decades, been an impartial get to that stage, the issue of ownership becomes clearer and simpler
player with knowledge from academia and experience of many because it’s the beginning of a representative democracy and, from
ownership processes,” says Annelie Karlsson, CEO of the Family that point of view, it doesn’t make much difference whether there are
Business Network. 20, 200 or 2,000 owners.
Over the years, many business economists have described the A key concept for family businesses, particularly Mellby Gård, is a
strengths and importance of entrepreneurial families. long-term approach, and this goes hand in hand with their view on
indebtedness. They don’t take on debt in the same way as other types
“That’s why it’s particularly pleasing that this has now been of companies, because they don’t want to risk losing control of the
confirmed by a number of economists,” she says. “They found that business. They don’t think in terms of quarters but rather generations –
family businesses are currently the biggest employers in Sweden, they don’t talk about Q1, Q2 and Q3, but about G1, G2 and G3.”
bigger than the public sector. They account for around a third of
employment and contribute to robust stability in society.” EMPLOYERS OF THE FUTURE
A STABILISING EFFECT ON THE NATIONAL ECONOMY When discussing the importance of entrepreneurial families, it’s
important to emphasize the role that the families play outside
New business research also shows that family businesses have higher entrepreneurship. Many of them are highly committed and play an
productivity than other forms of ownership, while having a stabilising increasingly crucial role in several areas of Swedish society, says
effect on the national economy, as they create more net jobs over time Annelie Karlsson:
than other forms of ownership. While they don’t recruit as much in
boom periods, they also don’t fire staff to the same extent in times of “Mellby Gård’s Johan Andersson can be seen in many contexts
recession. According to the National Institute of Economic Research, today. He’s a Board member of the Stockholm Chamber of Commerce,
unemployment in Sweden during the 2008 financial crisis would have the Confederation of Swedish Enterprise, SNS (Center for Business
been two percentage points higher without family businesses. and Policy Studies), Family Business Network and others. He also
participates widely in the public debate in the same way as his father
In several Swedish municipalities and towns, especially outside the Rune.”
big cities, family businesses are the biggest employers. In many places,
they account for between 80 and 100 percent of employment and GDP. Annelie Karlsson sees a tendency for many owner families to live
by the Wallenberg family’s old Swedish motto: landsgagneligt (for the
THIRD AND FOURTH GENERATIONS CRITICAL benefit of the country). And it’s not always about the whole of Sweden
benefiting – it can be the region, the municipality or the town.
Succession can sometimes be a challenging issue for entrepreneurial
families. “The Andersson family is a shining example of this,” says Annelie
Karlsson. “It should also be remembered that it’s often a demanding
“Research shows that it is usually the third or fourth generation and challenging role.”
that is critical,” says Annelie Karlsson. “But it’s not really about the
generation number, more about the family establishing a functioning “Finally, I want to emphasize how marvellously fun and stimulating
system of ownership and inheritance,” says Annelie Karlsson. it is to work in and with the type of family business that Mellby Gård
represents,” she says. “They’re all over Sweden, and often have global
If the owners develop as average families with two or three children operations. Mellby Gård’s Roxtec is a good example, a bit of a hidden
and adhere to the principle that all children should have an equal gem with exciting activities and a world leader in its niches. I see family
inheritance, the number of owners grows quite considerably from the businesses as the employers of the future.”
first to the third generation.
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