The study stated the different factors that determine whether a family is involved in managing a business and therefore in managing the family’s wealth as the life cycle of the economy and that of the business, its sector of activity, the geographic region where the company carries out its business and also the obligations imposed by society.
A statistical analysis of HNWI was depicted based on two criteria; the sources of wealth and the involvement of the family in the business.
The study involved around 1,200 respondents having a minimum net worth of 210 million US dollars in 12 countries or regions: Brazil, China, France, Germany, Hong Kong, India, Mexico, the Middle East, Russia, Singapore, the United Kingdom and the US.
Nearly half of the respondents of the study had business run with family involvement, while the other half had business managed by individuals.
It was also found out that family-managed millionaires are concentrated in certain regions of the world, whereas they hardly exist in others, with mature markets having more family-managed millionaires than emerging markets.
The highest percentages of family-run businesses are found to be concentrated in Hong Kong, India and the Middle East.
France is the only European country having family-run business while UK is the most individualistic.
Further, countries like Russia and China where free market is a relatively new phenomenon, have lowest rates of family-run businesses.
US, remaining as the centre of innovation and entrepreneurship continues to be dominated by self-made millionaires.
The study has also revealed that individual fortunes grew more rapidly than family-run fortunes.