Emotional ownership, the attachment that a person feels towards a family business, is stronger in males than in females according to a new report entitled "Emotional Ownership - The Critical Pathway Between the Next Generation and the Family Firm".
Emotional ownership (EO) is strongest between the ages of 31 and 40, when it rises to a mid-life peak. But the report's authors, Åsa Björnberg and Nigel Nicholson, say fostering EO at an early age gives family members a sense of identification and attachment to the family business.
The time and place to jumpstart the next gen's involvement in the family business is 6 years of age around the family dinner table according to the Institute for Family Business who launched the report.
"The resounding message of this research is that the bond between the next generation and their business is very much a product of the family," said Thierry Lombard, managing partner of private bank Lombard Odier Darier Hentsch & Cie, who supported the report.
"As a seventh-generation family business, we know that the loyalty and passion people feel towards a family business can be a source of competitive advantage. Few elements can stunt the growth of EO once the bond is achieved; however, badly managed conflict is one of them. For family businesses to be successful over the long-term, this commitment and passion needs to pass down through the generations."
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