Family businesses are among the oldest forms of enterprise. Today, they are among the most impactful drivers of global economic transformation. Despite receiving less media attention than public multinationals, family-owned firms generate more than 70 percent of global GDP and account for approximately 60 percent of all jobs worldwide, according to EY and the Family Firm Institute.
These businesses span sectors and cultures. But what unites them is a long-term impact rooted in legacy, stewardship, and a desire to pass value and impact across generations. In a world increasingly dominated by short-termism, economic uncertainty, and rapid change, family enterprises offer a counterbalance: a more patient, resilient, and purpose-driven model of business growth.
An Outperforming Model Hiding in Plain Sight
New research indicates that family businesses consistently outperform their non-family-owned counterparts. A 2023 Credit Suisse study revealed that listed family-controlled businesses delivered returns over 30% higher than those of non-family-controlled businesses over 15 years, thanks to conservative financial management, long-term planning, and lower management turnover.
“Successful family operated businesses in addition to delivering dividend returns to shareholders, also reinvest profits into operations, maintain lean capital structures, incentivise management through long term relationships, and focus on sustainability not just in environmental terms, but in the enduring health of the enterprise. In markets with weaker institutions or volatile policy frameworks, their resilience can be especially valuable,” observes Devvrat Periwal, Partner, Anjarwalla Collins & Haidermota (ALN regional firm in UAE)
Moreover, family firms are not standing still. Successor generations are increasingly driving digital transformation, professionalising governance, and embedding environmental and social considerations into their core strategies. As they modernise, they are becoming more attractive targets for institutional capital and more influential actors in shaping national and regional economies.
Unlocking Growth in Emerging Markets
In emerging economies, the presence of family enterprises is even more pronounced. In many African, Asian, and Latin American countries, they form the bulk of the private sector, and this has been significant in driving industrialisation, job creation, and inclusive growth. The World Bank estimates that in low- and middle-income countries, family-owned firms account for as much as 80% of all businesses.
“Family businesses are embedded in local economies, have long-standing community ties, and can act as stabilisers during economic or political turbulence. In Africa, for example, family-owned mid-cap firms, many earning between USD 10 million and USD 100 million annually, are increasingly recognised as the backbone of regional value chains and industrial development,” Mona Doshi, Partner, Anjarwalla & Khanna (ALN firm in Kenya)
Yet challenges persist. Succession planning remains a key vulnerability, with studies showing that fewer than 30% of family businesses survive into the second generation globally, and only 13% into the third. In many emerging markets, this is compounded by limited access to formal capital, unclear legal frameworks, and the absence of effective governance structures.
Family Enterprise to Family Office
As wealth created by family businesses grows, more are establishing family offices to manage and preserve it. Globally, the number of single-family offices has tripled over the past decade, with assets under management now exceeding USD 6 trillion.
These family offices are becoming increasingly complex, acting as long-term capital allocators into venture capital, infrastructure, private equity, and philanthropy. Many are also driving impact investing, channelling funds into areas aligned with family values such as education, climate action, and inclusive finance.
“In emerging markets, including Africa, Southeast Asia, and the Middle East, the family office model is expanding rapidly. While still relatively young, these entities are playing a growing role in backing entrepreneurial ecosystems, catalysing innovation, and bridging the gap between legacy and modernity,” Adeolu Idowu, Partner, Aluko & Oyebode (ALN firm in Nigeria)
Reimagining Global Capitalism—One Family at a Time
As the global economy evolves, the role of family enterprises will only become more important. Their ability to take a generational view, to operate with trust-based networks, and to embed purpose into profit makes them uniquely positioned to lead in uncertain times.
But this potential must be unlocked through structural reforms and policy support:
- Governance Professionalisation
Encouraging the separation of ownership and management, building independent boards, and formalising succession plans. - Tailored Financing Solutions
Designing hybrid capital instruments that respect family control while supporting growth. - Better Data Collection
National statistics bodies and international institutions need to track and publish data specific to family businesses to inform policymaking. - Regional Market Integration
Cross-border trade frameworks, such as the AfCFTA (Africa) and RCEP (Asia-Pacific), can provide a scale for family-led firms to expand sustainably.
Powerful Engine for Inclusive, Enduring Growth
Family businesses have earned their place in shaping the future of global commerce and investment. Their DNA blends continuity with adaptability, intimacy with impact. From urban economies to rural value chains, from developed markets to frontier ones, they are building capital not just for shareholders but for societies.
As the world seeks more resilient, equitable, and purpose-driven models of economic growth, the global family enterprise will be at the heart of this evolution, quietly driving transformation one generation at a time.
Sources
