1676357645 Inditex Mercadona and El Corte Ingles are among the 120

Inditex, Mercadona and El Corte Inglés are among the 120 largest family companies in the world

Inditex Mercadona and El Corte Ingles are among the 120

The uncertainty that the general economy is experiencing due to geopolitical tensions, high inflation or the ongoing fallout from the Covid-19 crisis seems to be affecting family businesses differently.

At least that is what the World Index of Family Businesses, which EY and the Swiss University of St. Gallen have been compiling every two years since 2015, shows. It ranks the world’s 500 largest family businesses by their revenue and also analyzes other information about these businesses such as: Number of employees, the diversity of the board members or the environmental commitment. Overall, one of the conclusions of the study is that family businesses have grown twice as fast as the world’s major economies.

In the edition accessible to him this year 2023 Five dayshighlights how three Spanish companies: Inditex, Mercadona and El Corte Ingles They were in the top 120 and another eight in the 500 who billed the most last year. Spain thus contributes a total of 11 companies to this prestigious ranking.

Founded by Amancio Ortega, the company tops the podium among Spanish companies for the first time, coming in 51st place overall. Mercadona follow at a further distance in 54th place in the global ranking and El Corte Inglés in 117th place.

Acciona, Gestamp, Ferrovial, Grifols, Catalana Occidente, Antolin-Irausa, Prosegur and Técnicas Reunidas join these three in the ranking of the 500 largest family companies in the world.

Together these 11 companies represent a total turnover of 120,000 million euros and have 445,000 employees.

As explained by those responsible for the index, the total number of companies that make up the ranking and have been recognized for their level of innovation is generated more than eight trillion dollars in sales and employed 24.5 million people worldwide.

“Furthermore, these companies will be recognized and presented on the international stage as ready to adapt to the social and economic changes brought about by the challenges of the future,” he explains. David Ruiz-Roso, Partner responsible for EY Private-Family Business.

Although the number of European companies included in the ranking has decreased by 11% since 2017, companies from the old continent continue to lead the territorial ranking with 228 companies and are home to almost half of the world’s family businesses (46%). Next comes the total number of companies on the list, North America at 30% and Asia Pacific at 16%.

According to the analysis, European family businesses invoiced a total of $3 trillion, making it the region that brought the most new companies to the index.

Likewise, Europe is home to 14 of the 20 longest-lived companies in the table, including one 354-year-old company. by countries, The United States is the country with the largest number of family businesses (118), followed by Germany (78) and France (31)..

In terms of specialization of economic activity, the ranking continues to be dominated by consumer companies, which will account for around 40% of the index in 2023, both by number and by volume of business. The second most represented sector is industry and mobility with 29% of the volume.

Another fact revealed by this study is the longevity of these companies. More than three quarters of this corporate class (76%) have more than 50 years of seniority and experience, showing that the values ​​applied by its management have managed to withstand the volatility of the market for several generations. Figures showing the extent to which family businesses can sustain both their success and succession over time.

How is leadership in these companies?

governing bodies. In terms of leading companies in the ranking, almost half (45%) have a family member as CEO and 23% of board seats are held by family members.

Gender. In terms of gender distribution, only 5.8% of companies on the list have a woman as CEO and only 23% of board seats are occupied by women.

tractor effect. The report highlights the driving effect that these types of companies have on the rest of the economies of their countries where their weight is significant, such as B. Spain. “They have a long-term vision that drives innovation,” they emphasize in EY.