The image of family businesses has improved significantly in recent years, whereas family businesses are often insufficiently aware of the distinctive competencies that they possess. Family businesses can realize considerable advantages by positioning themselves as a family business in their communication and marketing activities. This is one of the recommendations from the study carried out by Nyenrode Business Universiteit, Baker Tilly Berk, ING and NPM Capital in connection with the ‘17th Family Business Day’.
Distinctive competencies
Most family businesses are insufficiently aware of the distinctive qualities that they possess. The study shows that family businesses clearly distinguish themselves from non-family businesses. For instance, customers consider family business to be more respected, better known, more admirable and prestigious than non-family businesses. Furthermore, family businesses have a more long-term perspective than non-family businesses and family businesses are regarded as very attractive employers.
A lot to gain
The image of family businesses has improved considerably in recent years. "Family businesses used to be regarded as unprofessional, small-scale and old fashioned; their image has now changed completely into innovative, strong and reliable", according to Professor Dr. Roberto Flören, professor Family Businesses at Nyenrode and author of the study. Flören observes that the added value of the family business is increasingly acknowledged in the market. "These testimonials regarding the success of family businesses should be used a lot more in their marketing and communication activities. A lot can therefore be gained, both with regard to the labor market and with regard to customers and suppliers."
Labor market
A big difference exists in the labor market between how employees of a family business value their employer and the degree in which family businesses make use of this. Over half of the employees indicate that they consider it important that their employer is a family business. Nevertheless, family businesses hardly make use of the fact that they are a family business in their labor market communication.
Customers
Stefan Jansen, partner at Baker Tilly Berk and co-author of the study, recommends, in view of the results, that family businesses should consider building a family-based brand identity. "The company can base the brand identity on the involvement, values, conviction and tradition of the family. Family businesses can emphasize to customers that they value good relationships with their customers and that their long-term perspective increases the likelihood of a stable customer relationship."
Study
For the study of Nyenrode Business Universiteit, accountancy and tax advisory firm Baker Tilly Berk, ING and investment partner NPM Capital use was made of over 40 interviews and 400 questionnaires completed by directors of both family businesses and non-family businesses. The study was carried out in connection with the 17th Family Business Day which will take place on November 2nd.