Figure 2: Ownership, governance and investment structures; challenges and approaches
Investment structure Dependence on owner Business idea Scarcity of resources Lack of professionalism High risk Young family business Life cycle risk Other competences Professional portfolio management Dissipation of resources Reduced owner identification Other competences Reduced owner identification Focused family business Diversified family business Family investment office Governance structure Abuse of power Dependence on sole proprietor Unplanned dropouts Succession Owner managed Conflicts of interest between active and inactive owners Envy, jealousy and resentment Finding and retaining suitable managers Principal/agent conflict Waning owner identification Concentration of risks for owners Lack of owner identification Family managed Family controlled Externally controlled Ownership structure Abuse of power Dependence on sole proprietor Succession Sole proprietorship Sibling rivalry Power of ownership Entrepreneurial spirit Diversity Old rivalries Entrepreneurial spirit Reduced owner identification Solidarity Solidarity Reduced owner identification Sibling business Cousin consortium Family dynasty