Serving as a springboard for discussions at this national conference was the acknowledgement that family-run businesses are a key player in the European economic landscape. However, the crisis (or more precisely, the sea change) of recent years poses multifaceted and complex questions: businesses are facing changes in where they operate, what kind of business they do, their culture, and how they do business. These questions must be answered with pragmatism, a typically entrepreneurial trait, and with reflection, more the domain of academia. Consequently, constructive and realistic dialogue between the business and research communities emerges as crucial. In addition, economic difficulties are being compounded by political instability stemming from the terrorist threat that is striking globally with increasingly greater frequency, intent on destabilizing, among other things, the freedom of thought and opinion that are fundamental prerequisites for businesses to be able to operate.
It was suggested that, in such a scenario, family-run businesses will play an increasingly major role in the revival of industry, viewed as desirable in order to recapture the value of a united Europe that is not driven by fear, but rather is rooted in the ethics of conviction and, thus, responsibility – two values which characterize family-run firms that are therefore called upon to assume a greater role in society. The participants stressed that political leaders must also be guided by these values in formulating their strategic choices.
Dynamism, the ability to respond quickly to changing market needs, and the ability to maintain strong links with their local community and their own founding values were singled out as the key elements that facilitate the development of family businesses. It was recognized, however, that at the same time such firms face complex and to some extent new challenges, such as succession planning, growth, and innovation.
Passing on the ownership of the business and the resulting generational handover was characterized as a crucial step in maintaining business continuity, geared to ensuring growth that is sustainable and in line with the values that are held dear by the business owner and family. The critical issues faced by firms in terms of succession planning were deemed similar as between the various European countries, such as Italy and France, though the responses of the respective national legal institutions have been different. Italians benefit from relatively low taxation of inheritances and donations. However, the rules governing the forced share of an estate – a concept that is perhaps anachronistic given that it developed during the age of the agricultural economy – was viewed as potentially too rigid to protect the transfer of “living” assets, such as a family business.
It was emphasized that every generational handover of a business is imbued with significance when framed within a prospect of long-term sustainable growth. The growth game is played out in a competitive scenario that has widened the focus from the sector to the supply chain. Successful businesses are those that control and integrate into their supply chain, which is often international. The automotive industry was held up as a shining example of such a supply chain, where Italian special components suppliers work constructively with the big German carmakers. Growth can therefore be pursued if businesses are able to grasp this shift in perspective.
While recognizing that modern businesses cannot grow without innovation, the participants clarified that it is not just a matter of technological innovation, but also, and especially, innovation in the competitive model and in the way of doing business. In this regard, technological innovation was seen as serving as a “leveler”, because it is easily accessible on a wide scale and reduces the divide between firms, thereby facilitating the creation of networks. The business model must also be as clear as possible in order to be able to respond with skill and expertise to the globalized international market. The participants pointed to examples of virtuous businesses, in the industrial automation and pharmaceutical sectors, which have been able to innovate their processes and systems, strengthening their approach to strategic alliances with suppliers, universities, and research centers, thus enabling them to offer innovative and globally competitive products.
In conclusion, it was reiterated that succession planning, growth, and innovation are the three key challenges that family-run businesses face today and will go on facing in the future. These challenges can only be overcome if firms continue to cultivate a social interest, not only in the sense of patronage, but also proactive involvement in their surrounding environment, primarily in the local community. Indeed, it was submitted that local communities will be at the heart of the industrial renaissance and that it is their capacity for resilience which will determine its success in being able to attract businesses and talent. Family-run businesses, bolstered by the passion and local roots that distinguish them, are essential for the development of local areas and their people, who, ultimately, are at the heart of every renaissance.