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A global survey of over 1,830 family businesses, conducted by The Successful Transgenerational Entrepreneurial Practices (STEP) Project, found that only 18% of their current leaders were female. This may come as no surprise. The family business can be considered a distinct form of entrepreneurship – and entrepreneurship has historically had a prevalent exposition of masculinity.
Traditional gender roles can be seen seeping through family business in societies across all cultures and the right of succession belonging to the first born child is still customary. It can be difficult to challenge traditions and customs, and we must consider the impact of this on the performance and operation of family businesses, and moreover, what does this mean for the next generation of family business owners?
Given the small female representation in leadership positions in family businesses, it’s important to acknowledge the benefits that female leadership can bring to an organisation. Women have a transformational leadership style, which by its nature demands more collaboration and consultation, and encourages individuals and teams to pursue and identify new opportunities. This in turn makes them holistic managers and leaders. These characteristics are crucial for the success of a business and should be cultivated in any leader, irrespective of gender.
Pleasingly, in contrast to the Global statistics presented by the STEP Project, trends from the Family Business Survey 2021, conducted by Grant Thornton Australia and Family Business Australia and New Zealand, highlight a potential shift in gender disparity, within Australian family businesses, with female leaders consistently increasing over the last 5 years, from 15% in 2015, 20% in 2018 and 30% in 2020.
In our recent webinar on the Family Business Survey 2021, Belinda Lyone, Co-CEO of Complete Office Supplies – the largest family-owned and operated office products supplier in Australia, said:
“Family business, we respect hard work and intelligence… are you pulling your weight? Are you adding value? And are we being successful?.. It’s just all about a demonstration of hard work and commitment.”
This highlights the use of “meritocracy” in Family Businesses, and that family businesses are already acknowledging the importance of eliminating gender biases – in all genders.
This is further evident in the results from the Family Business Survey 2021 which shows that the values, concerns, priorities and satisfaction, of male and female family business owners/leaders, are largely comparable.
It won’t be a quick fix, but it is achievable.
Family businesses that value the importance of effective and successful leaders, may start by evaluating their beliefs and perceptions and encouraging open discussions. To favour communication over avoiding offence, and shift the mindset around adversity from challenging traditions and customs to one focused towards curiosity and learning.
Although it will be uncomfortable at first, it’s important to have the courage to open a new perspective and discover the competitive advantage the new generation of family business leaders can contribute to the future.
Establishing a Family Employment policy clearly identifies the criteria required for each role and leadership positions – promoting and rewarding purely based on merit, performance and capability.
Families should actively encourage family members from all genders, from a young age, to participate in the business in order for them to “learn the ropes” and if applicable, pursue the required professional/vocational education and training, to ready them for a career in the family business.
