I urgently requested information on The History of the Rise and Fall of Family Private Enterprises

The characteristics of a family business are in terms of advantages.

Tenacious vitality;

It is a kind of family affection and blood bonding, and the unity within the family.

The operating cost of the enterprise is low. The cost of production, the cost of coordination is low, and the cost of supervision is also relatively low.

In terms of drawbacks.

McKinsey & Company's research concludes that only 15% of family businesses last for more than three generations, and many small businesses are short-lived.

There are still two major "chronic diseases" in family enterprises, one is that family enterprises are easy to fall into the whirlpool of property rights and management rights, and the other is that the problem of narrow financing channels has always been a problem for enterprises.

That's all you know.

It flourished at first, then decayed.

There is a good book, Money and War.

A key milestone in the process of family wealth inheritance is the transition from the first generation of entrepreneurial investing to institutional investing. First-generation entrepreneurs tend to be entrepreneurial, have a keen sense of smell, and are adventurous, which are the secrets of their success. But the most important thing in wealth management is the balance between risk and investment, that is, maximizing your returns at the level of risk you can tolerate.

Let's say a successful entrepreneur cashes out a portion of his cash when his business empire reaches a certain stage. Then this money, he can invest in a brand new and exciting business, which has a half probability of being successful, thus getting a 10-fold return. But there is a half chance that this thing will fail, and it may be lost.

Another option is to invest the money in a long-term, diversified investment, potentially with a return of 10% per year. In the start-up stage, most entrepreneurs will choose the former. However, in the stage of keeping the business and passing on the business, most families will prefer the latter.

When wealth accumulates to a certain stage and scale, it will be very risk-averse. Any erosion of family wealth may lead to the life of future generations of the family, and may even lead to family conflicts and then affect the development of the family business.

That's why we see that big families in Europe and the United States basically have their own family offices, which are responsible for managing the family's finances. Chinese entrepreneurs are also increasingly facing the problem of family inheritance, or some of them are still in the prime of life, but they have also made a lot of plans in terms of family wealth (such as setting up family trusts, etc.).

There are many big companies in the world, why are most of those that have been standing for a hundred years are family businesses?