Family-owned businesses are the key players in the economy, but this role is commonly underestimated and unnoticed, and even sometimes barely survived the economic, geopolitical, and technological disruptions (McKinsey & Company, 2023). To be identified as a family business, it has to consist of more than 50 percent voting power controlled by a family for a small firm, whereas at least 20% is needed for large and public firms. Hence, this proportion of ownership rights, therefore, could severely influence the firm’s governance and its decision (ScienceDirect, 2022).
Applying Three Circle Model to my family business, it can be identified my family as implementing a mix of family and non-family members' roles in the company. There are different roles of different individuals in my firm as well as different characteristics which briefly described as follows:
There is none of external investor who isn’t our family member and isn’t working in the business.
However, there are a lot of people who are in the management team and working as employees who are not our family members.
There is also no other owner who is not our family member and is working in the business as well.
Me and brother are working in the business, however, we don’t own shares.
There is my sister who isa family member who is not entirely involved in the business.
There is my mother who owns shares in the business but is not currently working in the business.