Family cohesion as a longevity factor in family businesses: the case of Persán

Abstract

The longevity of family businesses is one of the most significant questions in this research from the point of view of knowing the risks and factors that contribute to their long-term survival. We highlight the role of family cohesion as a facilitator of such longevity. Cohesion enables succession, because when problems arise those family businesses and business families that are cohesive are more likely to survive in the long term. The research focuses on SMEs, where the relationship between family and business is more relevant than in large family corporations. In this paper, we illustrate the role of cohesion or its absence in the evolution of a family business - Persan - and how periods of family unity are typically accompanied by phases of business growth and success, as well as how conflict among owning families can slow businesses to a crawl and even lead them to bankruptcy.