During the transfer of ownership and leadership in the family businesses, the crucial entrepreneurial and managerial risk is by its nature non-transferable and internally conditioned. Accordingly, the two entrepreneurial functions bear distinctly recognized risks associated with their performance. The function is regularly performed by the owner but in recent times it has been partly or completely transferred to the professional managers. The performance of this function is reflected in the vital decision making on the work processes and results towards achieving sustainable growth. Beside the ownership function, the family business entrepreneur also carries out management functions by leading and directing the family business. The average life span of family business is 24 years which clearly demonstrates the generation change issue in the family businesses, and consequently-growth and sustainability issues. According to the most recent research of the International Family Enterprise Research Academy, between 80 and 95 % of all private companies worldwide belong to the family businesses and generate more than 75 % of GDP while employing more than 85 % of the total number of employees.
Family business represents the most common form of the company ownership and management organization.
