Historically, entrepreneurial families have always had in their values, the desire and passion to have an impact around them. Be it in their community, in their home country, in the field of sports, education, environmental protection or humanitarian aid as well many other causes that are dear to them. For some, this takes the form of impact investing or philanthropy, but by approaching these holistically, family businesses have the means to change the world.
Impact investing, philanthropy and families: Why only some family businesses, more so than others?
Despite their wealth, they don’t only cultivate financial capital. They also develop and successfully leverage:
- Their family’s human capital: to align its members to prepare the next generations to undertake and invest together, develop their entrepreneurial orientation, take over the operations of the family business and become a director.
- Their societal capital: their commitment beyond their company to contribute to a positive social and environmental impact in their community, within their territories in which they have their operations and in collaboration with the public and private ecosystem that surrounds them.
- Their reputational capital: the ability to communicate their contribution to the major challenges they face.