S1 Ep14: Career Choice: Joining the Family Business

This week we are exploring the option of joining the family
business as a career choice. Siobhán Murphy, DCU Careers
Advisor is joined by Eric Clinton, Associate
Professor in Entrepreneurship in DCU and Director of the National
Centre for Family Business, DCU Business School to
discuss this topic.





Show notes


0:06- 0:45


Introduction


Siobhán Murphy, Careers Advisor DCU introduces the topic of
joining the family business and Eric Clinton, Associate Professor
in Entrepreneurship and Director of National Centre for Family
Business, DCU Business School.





0:45 - 5:20


What is the family business Landscape in
Ireland?


64% of our firms are family businesses. This does not include
family farms. When you include this, it brings it up to approx
80%. Agriculture is an important part of our economy. These
family businesses are in every town and village in Ireland. 50%
of GDP comes from family businesses and more than 50% of
employment comes from family businesses. Look at the sponsorship
of local GAA/Scouting/local charity and how it also provides a
contribution to wider society. However, there are greater numbers
of family businesses in other EU countries ie France and
Italy. 





5:20 - 11:15


What to consider when looking at joining the family
business 


First thing is to be honest with yourself. Important to
understand your own passion.  If you want to go into a
different profession - do so. You can of course be an owner
without being involved in the family business. Consider working
outside of the family business and gain different experiences.
Some family businesses are multi-generational and they have
learned how important it is to gain experience outside of the
family business. Manor Farm has a rule that family members must
work outside for five years in a managerial role and must be
interviewed before joining the family firm. Consider working
abroad and keep connected  with the family business. Join a
network of next generation family businesses to have a support
group.





11:30 17:45


Family dynamics, work life balance - the
tightrope


Recent events with Covid have resulted in succession happening
sooner than expected which is challenging for all involved. Eric
suggests structure and formalisation and avoiding the kitchen
table being the boardroom. It can get dysfunctional very quickly.
Take what you learn from university and take those best practices
back into the family business. Firstly, use your parents first
names in the workplace to change the dynamics of the relationship
ie John instead of Dad. Try to avoid bringing the business back
into the family home where at all possible. Working with siblings
can also be challenging. Almost the worst thing to do is equally
divide the wealth and there should be a conversation about
ownership - one option is a co-CEO. Dynamics of children and
grudges can prevail. Needs to be a method to manage these
situations.





17:45 - 22:15


What are the joys of joining a family business?


Legacy and a sense of pride are key. The business comes with
capital and this is a huge advantage with a potential to invest.
It can mean that there is a diversification opportunity. Eric
reflects on the Keogh Family Business and how they have
diversified but were always innovative. Being responsive and
innovative is what is important for each generation.





22:15 -24:00


Are you family first business or business first family
business?


Legacy can be good but also pressure. Knowing how and when to
sell etc is important and need to move to the mindset of the
business first family business. Commercial decisions have to be
made. Have to be willing to make hard decisions.





24:00- 27:00


You successfully joined the firm - but you now want to do
different things and leave


Eric explains that one of the most important things to do is set
up structures to keep the business fit and healthy. One of the
key pieces of advice is to have a shareholder’s agreement. This
covers how the wealth is passed on and how shares can be sold.





27:00- 33:45


Adopting career planning approaches to the family
business


In career planning a sense of place is important and which for
many can be in a number of places around the world. There is an
opportunity as the world has got smaller to work in the family
business but from a different part of the country/world. It is
about thinking differently and laterally and not always assuming
that you need to situate yourself locally. Eric provides a number
of examples of how this has arisen for family businesses in
Ireland either through circumstance or through innovation. Irish
family businesses are in all parts of the world.





33:45 -37:15


Summing up & Eric’s Top Tip


Siobhan & Eric sum up. Eric’s top tip is to have an honest
conversation with yourself, get a mentor outside of the family
business, gain experience outside of the business, see the world
and upskill before joining the family business.