Owners of family businesses support innovation policies in their company more than owners of non-family businesses.
Nearly 79% of family businesses are willing to waiver their dividends to stimulate innovation. In non-family companies, that is 60%. Also, more than 65% of family businesses are prepared to accept a year of negative results if that stimulates innovation at the company. With other companies, it is 40%. That was concluded by Professor Roberto Flören, professor of family businesses at Nyenrode Business University, in a survey he conducted in cooperation with ING and NPM Capital.
"The results disproved the myth that family companies would not be innovative," says Flören. The professor conducted research into four hundred companies, both family and non-family companies. For this, the directors of the companies were interviewed.
Over 62% of all family companies have introduced one or more new products or services in the last three years. Also, nearly 72% have renewed internal business processes, according to the researchers.
Long-term
Thanks to capital provided by the owners, family companies can invest in innovation in the long term, Flören says. At the same time, not all of these companies have the right resources for it.
According to Flören, a threat to the innovative power of family companies lies in the fact that the company is highly dependent on the founder's discretion. Also, the fact that a large part of the family power is held in the company, plays a role.
"Family companies often have insufficient financial resources to innovate," says Flören. "Over 32% of these companies would be more innovative if they had more financial resources available."
Translated by Asta Kerkhoven
Source:
https://www.nu.nl/ondernemen/4990091/familiebedrijven-meer-bereid-innoveren-dan-andere-bedrijven.html