Family businesses (FB) are a central component of many economies, especially in the Alpine region. With their deep roots in the community and their long-term perspective, they make a significant contribution to sustainable development and the preservation of regional identity.
Family businesses play a crucial role in tourism by offering authentic experiences and services that are strongly linked to local culture and tradition. While they have the potential to promote innovation, the specific ownership structure and business organization also pose particular challenges. (Zehrer, 2017)
Small and medium-sized family-run businesses characterize the Tyrolean tourism structure and are an important factor in the state's tourism development. The younger generation is increasingly managing the businesses with international expertise and combining professionalism with a sense of home, which contributes to an authentic and modern representation of the Alpine lifestyle. This importance of family businesses for Tyrolean tourism is emphasized in the region's tourism strategy Der Tiroler Weg - Perspektiven für eine verantwortungsvolle Tourismusentwicklung (Land Tirol et al., 2021).
According to the EU definition, a business is a family business if the owner family holds the majority of decision-making rights and at least one representative of the family or relatives is involved in the management of the business (KMU Forschung Austria, 2013, 2020).
According to Zehrer (2017), family businesses face specific challenges resulting from the close connection between family and business. Succession planning in particular harbors potential for conflict, as there is often disagreement about the suitability and preparation of the successor. Unclear distribution of roles and unequal power relations within the family also lead to tensions. Strategic differences between older and younger generations also make the long-term direction of the company more difficult.
Financial matters are another challenge, particularly the decision as to whether profits should be distributed or reinvested. Communication problems and non-transparent decision-making processes can fuel mistrust, while the balance between family obligations and business needs is often difficult to maintain. Conflicts also arise due to differences in values and working styles between generations, as well as disputes over ownership shares and family members joining or leaving the business. Personal emotions such as envy and old family conflicts can also put a strain on the business climate.
MCI, Head of the Center for Family Business
anita.zehrer@mci.edu
Phone: +13 512 2070 - 7110
Prof. Priv.-Doz. MMag. Dr. Anita Zehrer is Professor of Business Administration with a focus on family businesses at MCI. She has headed the Family Business Center since 2016 and is intensively involved in topics such as company succession, strategic development and innovation in family-run businesses. With her expertise, she contributes significantly to the networking of science and practice and supports family businesses in Western Austria through knowledge transfer, advice and innovative solutions.
Contributor: Laura Wittkopp, MA, MCI Tourism
