E&Y: Half of Romanian family businesses make it to the second generation

Half of local family businesses are passed to the second generation of owners, while 20% make it to a third generation, according to the E&Y study The Barometer of Family Owned Business in Romania. At the same time, only 3% of family businesses go beyond the third generation of owners, according to Romania-Insider.com.

The study surveyed 247 family business owners, who answered an online questionnaire between February 8 and March 5 of this year.

Some 44% of respondents said that their business was completely dependent on them while 62% had not picked a successor yet.

Out of those surveyed, 80% led businesses with a turnover of EUR 1 million. Of these businesses, 20% had been passed on to a second generation, while 73% were still run by their founders and getting ready for a generation transfer.

At the same time, only 27% of businesses with a turnover of over EUR 1 million were run by a leader who took over from the founders, compared to 53% of family business worldwide.

Overall, 80% of the businesses surveyed had at least one woman in a top management position, compared to 95% with one man at the same level. Also, 49% of business had more than 2 men in top management, compared with 31% with at least 2 women. Of the family businesses surveyed, 45% did not hire a woman member of the family, compared to 34% that had no man member of the family hired.

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