Bank of Italy, crucial generation transition for family businesses, new members joining

The entry of new external partners into family businesses at what is a "crucial moment", i.e. the "generational transition", would allow them to "strengthen in size and production". But to achieve this objective, "institutional, fiscal and market conditions that can favor the opening of the ownership structure" are needed, including the restoration of an inheritance tax.

The suggestion is contained in a study on the topic carried out by researchers at the Bank of Italy. The research underlines how "family businesses", a characteristic feature of the country's economic fabric, "are systematically smaller".

This type of company "grows less" even if, it must be recognized, it shows "greater resilience and relatively high operating margins".

The researchers thus reviewed the changes of the last ten years, characterized by many new factors, in the production system and examined the changes of control in family businesses characterized by the presence of elderly partners - distinguishing between those that occur within the owning family (generational transitions) and those that instead involve the entry of external partners.

"The transfer of control in family businesses - we read - constitutes a crucial moment in this balance.

It represents a window for possible reorganization of the company."

According to the researchers, therefore, when control remains within the family, "a continuity with the past is observed; however, when it is accompanied by the entry of external subjects - in particular non-financial companies - clearer signs" of strengthening emerge.