Family equity as a transgenerational mechanism for entrepreneurial families

Abstract

Purpose The purpose of this paper is to investigate the process of family equity creation and its role for transgenerational entrepreneurship. Design/methodology/approach This paper combines a systematic literature review on family equity with conceptual theory building, resulting in a model of family equity creation. Findings The proposed model contains three phases of equity creation that ulitmately leads to transgenerational entrepreneurship: harvesting, institutionalization (via a single family office) and reinvestment. Originality/value This paper conceptually introduces the family equity creation model, which may serve as integrative framework for future research on transgenerational value creation by entrepreneurial families. The presented findings are of relevance for family entrepreneurship scholars, entrepreneurial families, as well as for practitioners.