A reader recently asked, “what is a family business, anyway?” He was recognizing that businesses involving a husband and wife, or 2 brothers, as well as publically traded businesses such as Ford Corporation and privately held third-generation businesses might all be considered family businesses
In a classical family company the family exercises both ownership and control. As the firm grows however, it becomes more difficult to hang on to both majority ownership and management.
Fifteen percent ownership with two or more generations in management positions is largely considered to be the threshold for family business status. But there is no hard and fast rule.