CONCEPTUAL APPROACHES TO FAMILY BUSINESSES AND THE ROLE OF NECESSITY MOTIVES IN THEIR EMERGENCE
CONCEPTUAL APPROACHES TO FAMILY BUSINESSES AND THE ROLE OF NECESSITY MOTIVES IN THEIR EMERGENCE

Summary/Abstract: Family businesses are distinguished by their ability to be passed down through the generations and due to their stable business characteristics give a positive impetus to the sustainable development of the economy and employment. Furthermore, due to their unique advantages, such as cost reductions and the ability to overcome difficult conditions by mobilizing internal resources during financial crises, family firms stand out as resilient to economic shocks. Therefore, at a time when the global economy's financial stability and security are under threat, family companies are seen as highly efficient entrepreneurial activities and is one of the modern economy's backbones. The study looks at the roles of family businesses in the global economy, along with some of their characteristics, as well as the key criteria used in classification of them and the impact of necessity motives on the creation of family enterprises. We can conclude that the primary factors utilized in determining these firms are ownership, family members' engagement in the management of the business and representation in the top management of the firm, and business transfer by generation.

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