Entrepreneurship of Family Businesses in the European Union

Entrepreneurship of Family Businesses in the European Union

Family entrepreneurship as a form of economic activity plays a significant role in enlargement processes, integration and competitiveness improvement policies of the European Union. Family entities in their business strategies must take into account coping with the rules and practices of the European common market and internationalization as well as solve their specific problems related with family relationships and business and multi-generational perspective of functioning. The specific nature of family entrepreneurship requires an understanding of its nature and criteria for distinguishing these entities from other companies. In EU countries, family businesses have dominated the sector of small and medium-sized enterprises but also they play a significant role among large businesses. Family businesses create most jobs and nearly half of GDP, they are also a source of competition and the development of the market mechanism.