© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - Family Business Owners are the Most Innovative, Study Finds
Posted 2nd May 2018

Family Business Owners are the Most Innovative, Study Finds

Family business owners are more innovative than owners of non-family businesses but are restricted by limited financial resources, says Dr Roberto Flören, Professor of Family Business at Nyenrode Business Universiteit.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Family Business Owners are the Most Innovative, Study Finds
Image

Family Business Owners are the Most Innovative, Study Finds

Family business owners are more innovative than owners of non-family businesses but are restricted by limited financial resources, says Dr Roberto Flören, Professor of Family Business at Nyenrode Business Universiteit.

Despite this, 79% of family business owners will forgo dividends in order to boost innovation, compared to 60% of non-family businesses.

The research, carried out in collaboration with global bank ING and NPM Capital, which provides private equity to family businesses, examined 399 private firms, of which 69% were family-run.

Dr Flören says: “In order to remain competitive in arenas often dominated by much bigger corporations, small businesses have been required to innovate and exercise agility in order to succeed.”

“Historically, bad leadership was a pitfall for family businesses, with managers resisting change and embracing tradition. Now there is an almost completely different story, with over half of current directors stating that it is crucial for the continuity of the family business that the new director is even more innovative than the current one. It is clear that increasing numbers of these organisations are anticipating and preparing for this real threat ahead of time.”

His study found that 62% of all family businesses have brought at least one new product or service to the market in the past three years.

Dr Flören believes his study offers some important lessons for heads of industry to consider. He continues: “The report clearly shows that family business owners are not resting on their laurels, however there are still key threats to innovation which often include dependence on the innovative strength of the founder and a high percentage of the family wealth being tied up in the business, making it unavailable for use on new projects.”

“Yet despite these challenges, 72% of all family businesses have significantly improved or updated their internal business processes over the last three years. It is clear that bigger corporations looking to implement a successful innovation strategy would do well to look to family businesses for inspiration.”

Categories: Finance


You Might Also Like
Read Full PostRead - Eye Icon
New Grumpy Marketing Campaign
Strategy
06/08/2015New Grumpy Marketing Campaign

Campaign for Friskies cat food features internet sensation Grumpy Cat, highlighting importance of internet celebrities in increasingly online society.

Read Full PostRead - Eye Icon
Executive Coaching – The Secret to Sustained Success
Strategy
31/07/2016Executive Coaching – The Secret to Sustained Success

Pivotal Moment Transitions Ltd is a leadership development company. At Pivotal Moment, we support leaders and organisations when major change is afoot, such as individual leadership arrivals or promotions, a merger/ acquisition, a re-positioning within the mar

Read Full PostRead - Eye Icon
5 In-Demand Degrees That Can Boost Your Career
News
12/04/20245 In-Demand Degrees That Can Boost Your Career

Image source In an era marked by rapid technological advancements and shifting economic landscapes, career advancement often hinges on one’s ability to adapt and grow in alignment with emerging trends. Identifying and pursuing in-demand degrees can serve

Read Full PostRead - Eye Icon
AI Ad Specs
Strategy
19/05/2016AI Ad Specs

AI Ad Specs

Read Full PostRead - Eye Icon
Great Canadian Gaming’s Acquisition of Casino New Brunswick
M&A
28/05/2015Great Canadian Gaming’s Acquisition of Casino New Brunswick

Great Canadian Gaming's Acquisition of Casino New Brunswick

Read Full PostRead - Eye Icon
Bond yields and dollar weakness
Finance
03/02/2018Bond yields and dollar weakness

Bond yields and dollar weakness

Read Full PostRead - Eye Icon
Bridging the Gap: How Fractional CFOs Offer Big Business Insights for Small Companies
News
07/02/2024Bridging the Gap: How Fractional CFOs Offer Big Business Insights for Small Companies

There are fewer barriers to starting a small business than ever today, but owners and founders often face one core problem when trying to scale beyond the sole proprietor startup face – they need top-tier financial expertise but don’t have the resources to

Read Full PostRead - Eye Icon
Support for US Small Businesses
Leadership
13/11/2015Support for US Small Businesses

In run up to Small Business Saturday Alerus offers support.

Read Full PostRead - Eye Icon
Spice Private Equity & Helios Investment Partners acquire Africa Oil Corporation.
M&A
23/07/2015Spice Private Equity & Helios Investment Partners acquire Africa Oil Corporation.

Spice Private Equity & Helios Investment Partners acquire Africa Oil Corporation.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow