The Importance of Family Firms for Resilience and Transformation Capacity in the Swedish Business Sector

This is an English version of the non-peer reviewed paper ”Familjeföretagens betydelse för motståndskraften och omställningskraften i näringslivet”. Ekonomisk Debatt 50(7), 14–26.

Family firms balance the goals of profit and long-term sustainability. Compared to non-family firms, they tend to be less risk-prone in terms of investments and financing and provide greater job security but lower wages. Our empirical analysis shows that family firms contribute to stability in the business sector by being resilient during economic crises and laying off fewer employees than non-family-owned firms. However, family firms hire less during good times. Thus, family firms appear to have a positive effect on economic resilience but play a smaller role in the adaptability of the business sector.