Entrepreneurs experience the civil dimension of entrepreneurial activity as they explore their calling to entrepreneurship, which extends beyond a single generation. While property ownership is inherently private, the care for the common good—which encompasses the well-being of all individuals—demands responsible use of property. This implies considering the civil implications of entrepreneurial actions. For this reason, business production and the entrepreneurial ability to generate profits are not merely private matters; they impact the entire civil society, encompassing political, economic, and cultural aspects within an intergenerational dimension.
Hence, the importance of one generation passing on not only the material assets necessary for the ordinary production of goods and services, but also values such as industriousness, generosity, inventiveness, and courage. In short, what John Paul II called “initiative and entrepreneurial ability” in Centesimus Annus (n. 32), and what American scholar Michael Novak further analyzed. According to the business economist Marco Vitale, this dynamic can be summarized by noting that “strong families create strong family businesses because free market discipline, combined with family values, leads to well-managed family businesses.”
In this context, the Busch School of Business at The Catholic University of America launched the Family Business Consortium in 2021, led by Dr. Anthony Cannizzaro. Dr. Cannizzaro noted that 2021 was a prosperous year for family businesses. In his Apostolic Letter Patris Corde, Pope Francis dedicated 2021 to Saint Joseph, emphasizing the profound economic and familial inspiration he provides. The year also marked the 40th anniversary of two of Pope Saint John Paul II’s most influential encyclicals on work and family: Laborem Exercens and Familiaris Consortio.
In response to Pope Francis’ appeal and Pope Saint John Paul II’s challenge to continually explore “new meanings of human work”—and to remember that “the future of humanity passes through the family”—the Ciocca Center for Principled Entrepreneurship at the Busch School of Business launched an exciting initiative focused on family businesses. This initiative honors Saint Joseph and aims to refresh the Church’s social doctrine, aligning with Pope Francis’ vision.
First, the Busch School Family Business Consortium established a degree program to empower the next generation of family entrepreneurs—one-third of whom come from family businesses—to grow their enterprises while fostering a positive impact on their families and the communities they serve.
Second, the Consortium serves as a meeting point for family businesses that believe the family is the primary and vital cell of civil life—the fundamental unit of society from political, economic, and cultural perspectives. The Consortium provides family businesses with opportunities to come together, network, learn from one another, and grow together.
While a significant portion of economic science has often relegated family businesses to a secondary role, the Consortium’s approach seeks to recognize these entities as fundamental institutions in the development of modern market economies. As Professor Cannizzaro points out, the majority of artisanal production in Europe and the United States is family-run. At the end of the 19th century, when private managerial enterprises gradually replaced many family businesses, some predicted their demise. However, this did not occur. Family businesses remain the backbone of the American economy, contributing, according to some estimates, to two-thirds of the total gross domestic product and three-quarters of all new jobs created in the United States.
Family businesses can be efficient and competitive, but above all, they can be deeply human. When well-managed, they are distinguished by high levels of employee and customer satisfaction, low turnover rates, and a strong focus on human needs.
The issue of business succession primarily concerns the relationship between generations. It involves the emotional and value spheres, requiring the ability of parents to pass on not only their warehouses and machines but also the values that ensure economic success remains compatible with the common good. Conversely, it also necessitates the willingness of children to embrace these values, make them their own, and invest in them as if they were the primary factor of production.
This article was originally posted Avvenire (a daily newspaper of the Italian Episcopal Conference).