The uncertainty that the general economy is experiencing due to geopolitical tensions, high inflation or the consequences that persist after the Covid-19 crisis seems to affect family businesses differently.
At least that’s how it shows Global Family Business Index which have been produced biannually since 2015 by EY and the Swiss University of St. Gallen. It classifies the 500 largest family businesses in the world according to their turnover and also analyzes other information on these companies such as number of employees, the diversity of its boards of directors or its environmental commitment. In aggregate terms, one of the conclusions drawn by the study is that family firms grew twice as fast as the main world economies.
In the edition of this 2023 to which he has had access Five dayshighlights how three Spanish companies: Inditex, Mercadona and El Corte Inglés They were among the top 120 and another eight within the 500 that billed the most last year. Thus, Spain contributes a total of 11 entities to this prestigious ranking.
The firm founded by Amancio Ortega leads the podium among Spanish companies for the first time and is ranked 51st in the general classification. It is followed by Mercadona, which is ranked 54th in the global ranking and El Corte Inglés, which is ranked 117th, at a further distance.
Along with these three, Acciona, Gestamp, Ferrovial, Grifols, Catalana Occidente, Antolin-Irausa, Prosegur and Técnicas Reunidas slip into the ranking of the 500 largest family businesses in the world.
Together, these 11 companies represent a total turnover of 120,000 million euros and have 445,000 employees.
As explained by those responsible for the index, the total number of companies that make up the ranking, recognized for their level of innovation, generated more than eight trillion dollars in turnover and employed 24.5 million people worldwide.
“In addition, these companies are recognized and are presented on the international scene as prepared to adapt to social and economic change posed by the challenges of the future,” he explains. David Ruiz-Roso, partner in charge of the EY Private-Family Business area.
Although the number of European companies included in the ranking has decreased by 11% since 2017, firms from the Old Continent continue to lead the territorial ranking with 228 companies, hosting almost half of the family businesses in the world (46% ). They are followed by the total number of companies on the list, North America, with 30%, and Asia-Oceania, with 16%.
According to the analysis, European family businesses billed three trillion dollars as a whole, being the region that contributed the most new entities to the index.
Likewise, Europe is home to 14 of the 20 longest-lived companies in the table, including a 354-year-old business. By countries, The United States is the country with the largest number of family businesses (118) followed by Germany (78) and France (31)..
Regarding the specialization of economic activity, the ranking continues to be dominated by consumer companies, which make up around 40% of the index in 2023, both in number and in business volume. The second most represented sector is industry and mobility, with 29% of volume.
Another fact that this study reveals is the longevity of these companies. More than three quarters of this class of entities (76%) have more than 50 years of seniority and experience, which demonstrates that the values applied by its management have managed to resist the volatility of the market for several generations. Figures that show the extent to which family firms can maintain both their success and their succession over time.
What is leadership like in these companies?
Governing bodies. Regarding the leadership of the companies in the ranking, almost half (45%) have a family member as CEO and 23% of the seats on the board of directors are occupied by family members.
Gender. Regarding gender representation, only 5.8% of the companies on the list have a woman as CEO and only 23% of the board seats are occupied by women.
Tractor effect. The report highlights the driving effect exerted by this type of company on the rest of the economy of their countries where their weight is significant, such as Spain. “They have a long-term vision that drives innovation,” they emphasize in EY.
#Inditex #Mercadona #Corte #Inglés #among #largest #family #businesses #world