Long-term thinking
This is often referred to as ‘patient capital.’ Family businesses tend to focus on the long-term. They are actually willing to sacrifice their short-term gains to achieve longer-term goals. This often has to do with their willingness to create and continue a lasting legacy.
The average tenure of a chief executive officer (CEO) in a non-family business is six years, while in a family business, it’s more like 18 years.1 This can often lead to a stable environment with a strong sense of continuity, which plays an important part in helping family businesses outperform their non-family counterparts. Again, patient capital brings about a number of benefits that can lead to a sustainable competitive advantage for family businesses.
Community and philanthropy
Family businesses tend to be committed to their communities; they, in turn, can benefit from both its members being volunteers and supporters, and the business itself providing employment opportunities and financial support. This commitment to the community tends to permeate through the generations and provides family members with opportunities stemming from ongoing community support. When a family business becomes an integral part of the community, it can help provide a loyal customer base that continues through the generations.
