Global Family Business Index survey: Family businesses are still booming

By: Trademagazin Date: 2023. 02. 23. 11:33

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Family businesses are growing faster than the global economy, according to the latest Global Family Business Index ranking by EY and the University of St. Gallen, Switzerland. The list of the world’s 500 largest family-owned companies includes many well-known brands in Hungary, such as the German BMW, the Swiss Roche, the French L’Oréal, the Italian Prada or the Austrian SPAR. A generational change of management has already begun at many companies.

The combined revenue of the world’s 500 largest family businesses has now exceeded $8 trillion, and the companies collectively employ almost 25 million people. Compared to 2021, the ranked companies achieved a total growth of 10 percent, which is ahead of the expansion of the global economy. Three-quarters of the companies on the list have been operating for at least 50 years, and nearly a third have a century-old history. The first place in the index is still occupied by Wal-Mart, owned by the American Walton family, with revenues of nearly 573 billion dollars.

EY’s analysis points out that family members continue to play an active role in the leadership and management of businesses. In almost half of the TOP500, the CEO position is held by family members, while 23% of the board seats are held by relatives.

“The average age of the management of the largest family businesses is 62 years, but less than 20 percent of companies are consciously preparing for generational change by involving a family member younger than 40 in decision-making”

– pointed out Márton Paulovits, the director of EY’s acquisitions and acquisitions department.