Family businesses can be considered the oldest form of business organization. Defining family businesses is a difficult task since, so far, there is no consensus definition available. Therefore, for the purpose of this article, when we refer to the family business form, we mean a business/ enterprise/company that involves one or more families or family members in management and control as well as in day-to-day procedures. Today, family businesses make up more than 60% of all businesses in Europe and range from sole proprietorships to large international enterprises. Thus, whether large or small, listed or unlisted, family businesses play a significant role in the EU economy.
Family businesses are often described as the backbone of the European economy. This does not only apply to Europe, but also to the rest of the developed world. The issue we want to address in this article is the fact that low gender equality and diversity are weak points in the dynastic business cultures of family-owned businesses.
Women acquired the right to work around 1800, at the time of the Industrial Revolution. With the Industrial Revolution, the labor market underwent a radical change, which meant that not only men but also women and children were employed more frequently. Until that time, women were exclusively engaged in family (childcare in particular) and household duties. But for women, this non-domestic work, in addition to the usual and traditional care of the home and children, was not a form of emancipation, but rather a hard necessity resulting from the very low wages of working men not being sufficient to meet family needs. Women's work in factories therefore became a mere extension of domestic obligations and did not lead to a liberation from tasks for which women were traditionally responsible for. Female participation in factory work at the end of the 19th century was a marginal phenomenon that only affected the working classes. On the contrary, among the middle and upper classes, women's work was discouraged and considered socially deplorable because of the insinuations it generated that fathers or husbands were unable to support their families. Therefore the status of women did not change radically- on the contrary, the issues of women's economic, political and legal inferiority remained the norm, with few exceptions, all over the world. Women were still confined to domestic duties and to caring for their children. Culture and tradition offered a family model that was based on the authority of the father, to whom both wife and children were subordinate.
It was only with the reforms and laws passed around the 1970s that women acquired fundamental rights, such as the right to vote, also thanks to the second wave of feminist protests. The 1970s represented a turning point in the affirmation of women's social rights, but the transition from a formal to a real equality involves a long and challenging journey that has not yet been fully accomplished. In fact, despite many significant legislative measures, there are still many social, cultural and economic obstacles to women's full emancipation. The far-reaching social and legislative changes that have taken place with regard to the family have not succeeded in overcoming a certain patriarchal cultural heritage inherent in our society.
With this framework in mind, it is easy to understand why- until the recent past- all kinds of organizations were run and managed by men as no position of power could be held by women. Thus, even family businesses were only run by men and power was handed down from father to son. This sexist line of succession is the result of a culture of centuries that considered women inferior and ascribed to them certain characteristics that did not fit them for power. According to research, the selection of sons as successors is regarded as more or less natural by the male owners/founders of the family enterprises examined, whereas daughters are regarded as an after-thought. This is where gender roles and gender biases come into play. Gender roles, as we have already mentioned, frame the figure of the woman in precise roles, more precisely that of mother, wife and housewife; consequently, raising children, serving husbands and taking care of the house are the sole purposes of their lives. As far as gender biases/stereotypes are concerned, they are “lasting beliefs about the traits, features, and behaviors of members of gender groups” and, thus, they lead to expectations about how women and men should behave. Men are expected to display agentic traits such as assertiveness, dominance, competitiveness, and achievement orientation because they traditionally hold paid jobs and higher-level positions. Instead, women, on the other hand, are required to exhibit communal characteristics such as being helpful, kind, empathetic, understanding, and compassionate. Therefore it can be assumed that the issue of the exclusion of women in family business succession is a purely cultural issue; a culture that has changed (in part) over time as a result of a new understanding of women's value as humans (just as much as men's) and their role in society. However, this shift in mindset is not a comprehensive one; as is widely known that gender equality has yet to be achieved, and women continue to face significant discrimination in some parts of the world more than in others.
The good news is that while family traditions and social conventions still play a role in the selection of female successors, research predicts that the next generation's leaders will increasingly choose their successors solely on merit. Moreover, nowadays, many female family business leaders are successfully breaking down barriers and redefining how women in family-owned businesses may have been perceived in the past. While biases still exist in some parts of the world, industries, and even within some families, the role of women in family-owned businesses is evolving and will undoubtedly escalate when a new generation of successors takes over.
The Portuguese Case
Not only do we see more women in leadership roles nowadays, but we also see women managing family businesses, which was traditionally a male-dominated activity. If illiteracy was a widespread feature of the Portuguese population in the 1970s (and even then, it was estimated that 58.5% of women were impacted compared to 41.5% of males), we are pleased to see that gender opportunities have continued to improve throughout the subsequent 48 years of democracy.
One excellent example can be found in the Amorim family. Marta, Paula, and Lusa Amorim, three sisters, are now in charge of carrying on their father, Américo Amorim, who was once known as the richest man in the country. All three daughters attended universities in Portugal and chose to continue leading after demonstrating that they are indeed the best fit for the job. If in the past, the family name was passed down from father to son and girls adopted their husbands' surnames, this family demonstrates that in the twenty-first century, women are just as capable as men of defending their legacy. However, Amorim is not the only Portuguese firm committed to reinforcing the importance of women's roles inside family-owned businesses. Sonae recently stated that it wants to increase the number of women in senior positions by 39 percent by 2023. We can see that Cláudia Azevedo's organization is ambitious in extending its network of women and does not give any room for error. In a country where women earn 0.833 cents for every 1 € earned by males, it is almost exhilarating to hear a traditional company run by a female CEO acknowledge the importance that diversity and collaboration between both genders bring to the workplace.
These examples not only demonstrate women's ability to lead businesses, but they also demonstrate that female gender alliance is possible, beneficial, and urgent. Family businesses like Amorim demonstrate that female collaboration does not have to involve all of the feuds and dramatization that modern TV shows and society tend to display on the big screen. Women's workplace unionization is an advantage and a reality that should be encouraged and celebrated.
Co-written by Católica Equality for Business club and Nova Women in Business Club:
Inês Costa and Virginia Deidda
Bibliography:
• https://www.dn.pt/portugal/mulheres-representam-70-dos-portugueses-sem-escolaridade--- comissao-para-a-igualdade-9109471.html
• https://www.dn.pt/dinheiro/marta-sucede-a-paula-em-novo-ciclo-no-imperio-amorim- 12525476.html
• https://home.kpmg/dp/en/home/insights/2020/12/the-power-of-women-in-family-business.html