Many businesses often exhibit resistance to changing the status quo – family businesses are no exception. Be that as it may, breaking through this state of inertia can bring about many benefits for the family and the business.
When we talk about limiting ideas, we are referring to a way of thinking that some family business owners who are resistant to change, engage in. These types of businesses typically view ownership and management as one and the same. They usually believe that a single successor will take over the business and they rely heavily on that one entrepreneur. Leaders of such companies believe that their company is their profession and its future of it lies directly with them.
When talking about empowering ideas, we are really referring to a way of thinking that family business owners who are open to change, engage in. These businesses often view ownership and management as being independent. Leaders of such enterprises typically have entrepreneurial families and believe that all of their children have the capacity to create – as opposed to focusing on a single successor. They view their company as a springboard for diversification and believe that the future of the business lies within it.
Here is an illustration of how Limiting Ideas and Empowering Ideas differ.