Large family businesses have created considerably more new jobs than DAX companies over the past decade. They also hire a larger proportion of their new employees in Germany, while DAX companies without a dominant family behind them are more likely to create new jobs abroad. These are the conclusions reached by the Institute for SME Research at the University of Mannheim in a study published on Wednesday (January 4). The study was commissioned by the Family Business Foundation in Munich.

According to the study, the 26 largest family businesses in Germany created 837,000 new jobs worldwide between 2011 and 2020, while the 26 DAX companies without a dominant family created a good 390,000 new jobs. According to the study, the 26 DAX companies only created around 48,000 new jobs in Germany, while the 26 largest family businesses created a good 267,000 new jobs.

The researchers from Mannheim considered any company that is majority family-owned to be a "family business" - regardless of whether the company in question is listed on the stock exchange or managed by family members.

Accordingly, the family-owned companies also include four DAX companies: Volkswagen, Beiersdorf, Henkel and Merck. The study was based on a comparison of family businesses with the 26 companies listed on the DAX at the end of 2020 that do not have controlling families behind them: The authors of the study compared the largest 26 companies in each case in terms of employment.

Family businesses "demonstrably better" at surviving crises

In the overarching analysis, they also compared the data of the 26 DAX companies with that of the 500 largest family businesses in Germany. In absolute figures, the Schwarz Group, which owns the Lidl and Kaufland supermarket chains, came first with 190,000 new jobs. It was followed by Volkswagen with 160,000, Bosch with around 92,000 and the Aldi Group with a good 84,000. The authors have not yet compiled the figures for the coronavirus years 2021 and 2022.

This is the sixth time the Mannheim-based institute has presented the study since 2007. The foundation combined the publication with a political appeal: "The study shows that family businesses have demonstrably been better able to survive crises and keep their workforce together even in difficult times, especially in Germany," said CEO Rainer Kirchdörfer. "It is therefore essential that this type of company is not disadvantaged in the current tense situation."