The coronavirus pandemic has forced many family businesses to face an uncertain future and even the prospect of bankruptcy. At the same time, it is precisely in difficult times that the unique traits of family businesses become the recipe for survival.Family businesses constitute one of the foundations of the global economy – after all, they are the oldest known form of conducting business[1]. Nevertheless, over recent years, family firms have struggled with an unfair stereotype, being associated with small, financially unstable entities lacking professional management. Today, growing stronger, they represent the vast majority of the SME sector and a significant part of the Polish economy, generating a substantial percentage of GDP. In the face of the pandemic, family enterprises have also demonstrated in many cases that their unique characteristics and management style allowed them to emerge from a potential crisis unscathed.Solidarity in times of crisisThe coronavirus, which turned daily life and the functioning of the economy upside down, has resulted in a dramatic situation for many companies. In the case of local, family businesses, often the customers themselves rushed to the rescue. After all, economic patriotism is a characteristic feature of consumers when facing problems or financial crises affecting their favorite businesses. Poles behave no differently during the coronavirus pandemic. According to a study conducted by the Family Business Foundation at the end of 2020[2], Poles willingly support their favorite local family firms during the pandemic – this is declared by nearly 70% of respondents. This is a very large percentage considering the current economic situation and the fact that one in four Poles fears losing their job. The most common way of showing solidarity is making purchases or using the services of selected businesses, which nearly 54% of respondents declare. Almost 18% share information about supporting specific firms on social media, and nearly 12% financially support fundraising efforts for particular businesses.
A particular feature of family businesses is that solidarity works both ways here. Many family enterprises are deeply involved in the life of local communities, and their owners often feel responsible for the prosperous development of their region. Family firms often focus their CSR strategy precisely on the local market. Although many companies felt the effects of the pandemic strongly and fought for survival, some family enterprises that did not face such problems stepped up to help during difficult times, e.g., nearby medical facilities or affiliated businesses hit by the crisis.The family character as a motivation to helpThe last months of the pandemic have shown that family businesses possess a range of traits essential for survival, a sense of stability, and motivation in difficult, uncertain times. – A family business, where many team members are related, is often characterized by deep, close relationships and a less formal atmosphere. This translates into strong work motivation as well as mutual trust and loyalty, along with a sense of collective responsibility for the company’s fate. Very often, family businesses transfer these deep relationships and emotional bonds not only within the enterprise itself but also to the entire business environment. Hence, full of warmth and mutual respect relations with the company’s clients, contractors, or suppliers. – says Arkadiusz Drążek, Commercial Director of the family company Brześć, which produces sweets and snacks. In such an atmosphere, mutual help, solidarity, and motivation to face challenges naturally arise. It should also be remembered that family business owners think about their long-term development, considering future generations who may take over the reins. Therefore, they approach all decisions strategically rather than temporarily.Trust, loyalty, and flexibilityAfter the outbreak of the pandemic and the freezing of many economic sectors, family enterprises also faced challenges to stay afloat. It was precisely the close relationships created inside and outside family businesses that made their owners and employees often feel co-responsible for the company’s survival. Many entrepreneurs emphasized that security and maintaining employment stability, and thus the team’s trust, are their priorities. In facing new challenges, family companies showed that the fate of the employer is strongly linked with the fate of the employees, which translates into shared commitment and determination to find ways to mitigate the pandemic’s negative effects.
An equally important trait of family firms, usually representing the SME sector, which became a huge asset in unstable times, is great flexibility and the ability to quickly adapt to new conditions. Many companies tried overnight to transform their businesses and adjust them to new market needs. – Overnight, we decided to start producing disinfectants. Thanks to the family character of our company, high flexibility, and ease in decision-making, we were able to implement this plan at an express pace. Ultimately, the new brand largely protected us from the negative effects of the crisis. At the same time, we could also ensure constant supplies of disinfectants to local medical facilities. – says Jakub Gromek, CEO of Mazurska Manufaktura S.A., which focused on the production of craft spirits even before the pandemic.
Many entrepreneurs representing family businesses look to their future with concern. On the other hand, both consumer patriotism and the loyalty and trust of employees are becoming, for many family business owners, a strength and driving force for the joint fight for the future.
Author of the text: Martyna Dziopak, PR Manager at Good One PR agency, with many years of experience in communication support for family businesses from the SME sector
[1] https://wnus.edu.pl/sip/file/article/view/15108.pdf[2] https://ffr.pl/wp-content/uploads/2021/01/ffr-jakie-firmy-ratowac-komunikat-prasowy-29-12-2020.pdf
Material originally published in the Magazine of Family Businesses RELACJE, issue 1 (43) March 2021
