Family businesses have long demonstrated that the close relationships, loyalty and commitment that bind families domestically can also account for their business success.
The model has certainly worked for Donald Trump. The US president-elect joined his father’s property company as a youngster and his three eldest children — Donald Jr, Ivanka and Eric — hold executive positions in what is now a multinational empire. He has announced that the two sons will take control of his business interests before he takes office on January 20. They, together with son-in-law Jared Kushner, have been leading players in his presidential campaign and transition team.
The varied fortunes of Mr Trump’s enterprises over the years, however, reflect another truth about family businesses. Statistics show that only 30 per cent of such companies survive beyond the next generation.