Social capital and succession planning key for family businesses

A study conducted by IW Köln for the Stiftung Familienunternehmen highlights that social capital—comprising trust, shared values, and corporate culture—is a critical driver of long-term business resilience and competitiveness. While companies often prioritize technology and financial metrics, social infrastructure serves as a vital resource for navigating economic uncertainty, labor shortages, and digital transformation.

Complementing this focus on organizational health, expert Martin von Hirschhausen emphasizes the interconnected risks facing family-owned enterprises. His model suggests that business success is inseparable from family stability, personal health, and financial planning. Key vulnerabilities include unplanned leadership succession, lack of legal authorizations during emergencies, and the concentration of private wealth within the business. Addressing these qualitative factors is essential to prevent family conflicts from destabilizing operations, employee morale, and banking relationships.