Heir shortage: The looming crisis for family companies in a changing World economy – Adrian Wooldridge

In the intricate tapestry of the global economy, family companies often remain the unsung heroes, constituting over 90% of businesses. However, an impending crisis looms as demographic shifts and changing social norms lead to a dearth of successors. The traditional model of family-run enterprises, constrained by DNA, faces challenges in a modern era of declining birth rates and evolving marital dynamics. As these family firms grapple with the shortage of heirs, experts explore creative solutions, from revisiting arranged marriages to adopting innovative management techniques, to ensure the endurance of these vital engines of progress and trust in an uncertain economic landscape.

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By Adrian Wooldridge

Family companies are the hidden engines of the global economy. More than 90% of all companies are family companies. These include many of the world's biggest organizations such as LVMH Moet Hennessy Louis Vuitton SE in France and Samsung Electronics Co. in South Korea. A third of companies in Standard & Poor's 500 index and 40% of the largest companies in France and Germany have a strong family element.

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