How the top family businesses deal with these issues, particularly as many of them are big advocates of stakeholder values, will be of critical importance for the sector in the years ahead. The development of AI and robotics is likely to further hit their job-creating abilities.
Trends like the diminishing role in job creation of the top 500 when their output is rising are good for profits, but might have negative societal consequences in the years ahead. Nonetheless, issues like improving gender equality need addressing. Overall, the family enterprise sector is in excellent shape in Germany and is an exemplar of best practices for others to follow around the world.
The research found 67% (337) had family representation at board level, but a third did not. Breyer (founded in 1466), although under is current family owners, the latest generation involvement is the third.įamily Capital also looked at whether the family owners of the 500 had involvement at the board level (both executive and supervisory level) at these companies. The oldest business on the list is Boschgotthardshuette O. The two oldest family businesses in terms of the number of generations of the same family who have been involved in the business, 13 each, are the pharmaceutical group Merck (founded in 1668) and the bank Berenberg (founded in 1590). This was followed by the second generation (123) and the fourth (101). We did not look at gender equality at the board level for these businesses, but the lack of women in senior management at family businesses in Germany is something the sector will need to work on in the years ahead.įamily Capital also looked at family generational involvement in the top 500 and found third generation involvement – where this generation was the latest to be involved in the business, although not necessarily the only generation – comprised the biggest number on the list, at 142. Some of the more well-known companies on the list with no senior women in top jobs included the Robert Bosch Group, the Schwarz Group, which owns the supermarket chain Lidl, and the pharmaceutical group Boehringer Ingelheim. Our research found 394 (78.8%) of these businesses had no women representation at the C-suite level. Nevertheless, the top 500 family businesses in Germany are still extremely important to job creation in their domestic market and will continue to be so.įamily Capital also looked at women representation in senior management, i.e. What these employment numbers hint at is that the bigger family businesses are requiring less labour to produce more output – a trend happening across the world at the big corporate level. Total German employment was 41.7 million in 2018, suggesting the top 500 contributed to around 13% of jobs in their domestic market last year. With as many as one million of the 6.4 million people employed by the top 500 family businesses employed outside of Germany, their contribution to employment in their domestic market is closer to 5.4 million. Although this figure is substantial and indicates just how important these businesses are to job creation, the top 500’s contribution to employment is considerably less as a percentage of total employment in Germany than their contribution to total GDP.
The top 500 employed 6,412,413 people globally last year. It is clear they will continue to play an essential role in Germany, and fuel not only that economy’s growth, but the world’s as well.” “Most are embracing the challenge of the digital economy through efforts like their corporate venturing partnerships and investments, which will help them thrive in the future. “The research shows the huge importance of family businesses for the German economy,” says Peter Englisch, global family business leader for PwC. This figure accounts for 42.8% of the country’s GDP, which is by far a bigger proportion of family business involvement among the top five economies (the US, China, Japan, Germany, and the UK) in the world. Last year, the top 500 generated $1.8 trillion in revenues, against Germany’s total GDP of $4.2 trillion in the same year. Below is a table of the top 500, which looks at their revenues, family involvement, women in senior management positions, employment numbers, as well as other data points. These are some of the main findings of research by Family Capital in association with PwC on the size and characteristics of the family enterprise sector for Germany. But issues such as gender diversity at many of these businesses have been neglected at a time when women in senior management are considered critical to a company’s prospects. Most of the 500 will continue to thrive in the 21st-century digital dominated economy. Germany’s top 500 family businesses contribute nearly 43% of the country’s GDP, which underlines just how vital family enterprises are to the fourth biggest economy in the world.
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