From Rags to Riches: Changing Perceptions of Family Business in the Netherlands, 1945-2019

Abstract

This dissertation examines the evolving use and connotations of the term "family business" and reveals the strategic and political implications underlying the term’s usage. Throughout the 20th century, family businesses were criticized as outdated in comparison to large managerial enterprises, particularly due to their perceived limitations in resources and innovation. In the Netherlands, family firms faced skepticism, especially during the 1950s and 1960s, when egalitarian and meritocratic ideals colided with inherited wealth and control. However, a shift occurred in the 1980s as family businesses were reappraised, gaining recognition as viable alternatives to large, impersonal corporations.

The growing positive connotations were also possible due to the absence of a shared and accepted definition of "family business". This absence resulted in a wide array of definitions and typologies to capture the many different forms of family enterprise. Such definitional ambiguity allowed the term to be used for diverse political purposes, often contradictorily, as evidenced in parliamentary debates. Politicians employed the term to support various policies, particularly during discussions on inheritance and endowment taxes, where "family business" was strategically used in frames to advocate for tax exemptions. In contrast, family-owned businesses themselves rarely used the term in their advertisements during the periods of skepitcism towards family firms, underscoring the strategic use of the term.

This dissertation argues that the use of "family business" is not merely descriptive but is strategically employed to shape perceptions and influence political outcomes. The absence of a clear, accepted definition allows for flexible interpretations, enabling the term to be used to advance specific agendas. Thus, a critical approach to the study of "family business" is necessary, as its usage has significant political and economic implications.