List of Hundred oldest companies have been published. You can view it here. Many
of the companies in the list are more than 3 centuries old. The oldest firm is more than 1300 years old and it is from Japan. Family-run firms contribute up to 90 percent of the world's economy. Many countries' economies are highly dependent on family businesses, including Germany, the U.K. and Singapore. Leading student of capitalism always
mentioned that with the advent of industrial capitalism family firms will
disappear. For much of the previous century they proved right but now many
family firms are defying their predictions.
This trend can be seen in number of family firms among
fortune 500 companies. Family companies in fortune 500 companies have risen
from 15% in 2005 to 19% this year. This trends show the rising importance of
family firms. This rise can be largely attributed to rise of emerging economies.
In emerging economies the institution of family is still strong. For example in
India there is joint family system which successfully survived many centuries.
Same is the case in many Arabian countries where dynasties are not only ruling
in the business world but also in the political world. In Europe same trend can
be witnessed as nearly 40% of listed companies are controlled by families.
Unlike the past now family firms groom their successors to
manage effectively. They put them in tough and long series of experiment. Young
one has to work from most humble position to the highest position available in
the family firms. This reduces the
chances of management falling in wrong hands.
Like old money landlord families, before the advent of
industrial capitalism, many of the family firms today transferred the family
values which help them keep the family wealth in family hands. Inter-cousin
marriage, which is common in many emerging economies, helps transfer the shared
values to next generation. Another factor which let the family companies
survive is the availability of entire consulting industry to plan succession
and tackle the inheritance problems.
Now the family firms are not only taking care of family
fortune but also families’ human capital as well. Rich and old money families
educate their young ones in best business institutions. Competition among
family members further keeps the family members pressurized to perform the
best.
According to wealth reports the largest transfer of wealth
from one generation to another is going to happen in coming years. The control
of huge fortunes may transfer hands. Many people will become millionaire
without working their way to riches. This can bring back the old aristocratic
age when people advanced in their lives on the basis of heredity status, rather
than hard work and merit.
