Family businesses are the cornerstone of the economy

He was the first person in the Netherlands to be appointed professor of family business and lectures at Nyenrode. Roberto H. Flören holds supervisory positions at several family businesses and has unique insight into their development and standing. "A number of political parties have even included family businesses in their party manifestos."

He is the first person in the Netherlands to be appointed professor of family business, lectures at the Commissioners' Cycle at Nyenrode, holds supervisory positions at several family businesses... Roberto H. Flören has an insight into the development of and appreciation for family businesses like no other. “A number of political parties even include family businesses in their party manifesto.” Text: Bart-jan Brouwer

Where does your interest in family businesses come from?

“I was born and raised in a family business. My grandfather started selling and repairing typewriters in Gouda in 1934, and my father also started working in the Flören Kantoormachinehandel when he was fourteen. With the advent of computers, prospects diminished. My sister and I, the third generation, chose not to succeed my father. After sixty years, the company was sold to someone who still saw a future in that industry.”

Wasn't it required of you to also enter the business?

"No absolutely not. We had different interests. I played football at a high level: I played for Feyenoord for thirteen years. When I informed my trainer, Leo Beenhakker, that I would only train three evenings instead of four because I thought school was important, I was immediately kicked out. I don't think I ever would have made it either; it is really given to very few. From my class, only Mario Been and Peter Barendse made it through. I still follow football. Once every eighteen years I can cheer... After my studies at Nyenrode Business University and my service, I started working at Nyenrode in 1991. That would take a year, but I'm still there. In 1992, Walgemoed, a multinational network of accounting firms, conducted research into family businesses together with London Business School. The agency also wanted to have this research carried out in the Netherlands through its branch there. Walgemoed chose Nyenrode as a partner and happened to contact me. Within six months I was in all national newspapers as a 'family business expert'. That happens quite quickly in the Netherlands, even though I knew that I was not yet an expert. However, I have worked hard on this over the past thirty years. My specialty is not so much in business matters, but in how you deal with the company as a family, how those dynamics work, how you can avoid conflicts, how to ensure that everyone stays together, how to transfer to the next generation…"

Since 2002 you have held the RSM chair in Family Business and Business Transfer at Nyenrode. How do students feel about working in the family business?

“That has changed enormously. When I started in the 1990s, the ideal for every student was to do a trainee program at Unilever, Heineken, Shell or the big banks. Back then, if you started your own business, people thought you couldn't find work. After various stock market and accounting scandals and the time of the financial crisis, listed companies have come to be seen in a completely different light and the appreciation for family businesses has only increased. After all: family businesses do not suffer from an excessive bonus culture, management salaries that depend on the stock price and greedy shareholders. Family businesses do not think in quarters, but in generations. The image has changed from dull, boring and sleepy to challenging, sexy and 'that's where it happens'.”

What is the advantage of working at a family business?

“In these times of increasing individualization, it is important to belong somewhere. Family businesses are much more loyal to their employees, which is also evident during this pandemic. They do much more to retain the staff: the owners are willing to forego dividends and consume their own capital. A listed company is more likely to announce a reorganization to positively influence the share price. So yes, it certainly has advantages. Plus: you know who you work for. Conversely, the director also knows who works for him or her. An entrepreneur stays in office for an average of twenty-two years, while the chairman of the board of directors of a company listed on the AEX only lasts four years. There is a very different bond between employee and employer that offers flexibility in time, work and money. That makes it beautiful.”