This short book by Lebanese family business entrepreneur Raméz Baassiri stems from a compelling statistic: even though family firms make up two-thirds of the world’s businesses, only 30% survive past generation one; and in each successive generation, only a third of family firms successfully make the transition. Looking at his family business and academic findings, Baassiri discusses how a family firm can take advantage of what he labels “interrupted entrepreneurship” (i.e., “moments of actions that cause a change in your business”). He sees such interruptions as opportunities, not setbacks! In the first seven chapters of the book, he discusses how such interruptions have led to decisions that reshaped his family business. Then, in the book’s final chapter, he discusses how a family firm might profit from anticipating disruptions, adapting and acting early.
Indeed, the author discusses how a family business might take advantage of new opportunities, such as trading with Africa, particularly by taking advantage of core family values, such as trust (i.e., building on one’s core). The author then discusses how some types of assets might have particular value—tangible ones, such as real estate, or intangible ones, such as the value of passion (i.e., enjoying what one is doing)!
In chapter three, Baassiri discusses various elements of effective governance in family firms, such as having a family constitution and mission statement. Having a trusted advisor may be key to finding appropriate approaches to good governance! To effectively prepare the next generation, one should emphasize sound governance principles.
The next chapter deals with funding to support a business’s ongoing development and family members’ everyday needs. Giving is also discussed, including "strategic philanthropy" or giving back to society to build the business’s positive image. An overriding concern regarding funding is the ability to establish a realistic balance between all of these demands and priorities.
Mr. Baassiri extolls the value of education, and highlights its importance in maintaining strong entrepreneurial skillsets in the family; for this reason, educational efforts must be continuous, in his view. What Mr. Baassiri calls implicit education (i.e., learning on the job) is considered particularly effective.
The final chapter discusses how interrupted entrepreneurship can lead to new strengths in the family firm and presents gender empowerment and gender balance as particularly key.
Our regular readers should recognize many topics Lorange Network contributors have written about: building on the trust between family members; spending sufficient time clarifying one’s family governance; balancing between business needs, personal needs and philanthropy and focusing on education.
Finally, the book’s final chapter includes several guidelines for planning to increase the odds of the family firm’s ongoing success. Albert Einstein’s quotation is particularly relevant here: “If you always do what you always did, you will always get what you always got.” The author stresses the following factors in particular:
Always be ready to change the way you do your business. Nothing should be sacred here!
Complacency is death!
Positive thinking is key!
Hard work is necessary!
In general, I found this book to be most valuable because it contains an abundance of helpful advice to make the good even better in a family firm. Whereas most business books today beat around the bush with poorly-backed claims, Baassiri provides a pleasant counterpoint: the findings are well-documented with over 200 references, yet the book itself remains quite short and easy to read. I therefore highly recommend it.
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