The global economic integration, as a process, has an increasing impact on the national development policies, and due to being such, it is extremely difficult to control the application of traditional methods and instruments for economic development. It may be difficult to plan certain economic goals at the state level in advance. All enterprises in the world, big or small, domestic and non-domestic, public or non-public, developed and underdeveloped, are facing a series of questions that have to do with their future and prospects, respectively, their existence in surroundings with unforeseen turbulent situations comes into question?
What will the market needs be? What are competition aims? Are the customers’ attitudes shaking towards claims that technological progress? What about the development of new product? Is there a possibility of providing the necessary resources, guides towards globalization of business, which need to be used to achieve the efficiency, effectiveness and innovation, etc…. all these questions were addressed every day by the enterprises – regardless of whether they are family owned or not. What it is that makes family enterprises special and separates them from other companies which are not owned or family-controlled, represents the diversity of family interest and the interest of the company’s unique business family system.
Owners of family companies across the world share the same philosophy and values, they think in perspective, their capital is made of patience and diligence, care about the communities where they operate and work, so that the company is left at its best condition for inheritance. The business model of family companies is highly innovative and forward-looking, seeking to a better realization, creates more value, and preserves jobs, despite cyclical downturns and recessions.
The development of small and medium-sized family enterprise represents the fastest way and cheaper to develop national economies. SME are the backbone of economic development of countries in transition and supports the major role in employment that they are very significant for the democratization of society.
Keywords: small business, family business, local economic development, family, management.