The growing global technology sector is a game
changer for family involvement and the way fortunes are founded and
managed, according to a report from Forbes Insight and Société
Générale Private Banking.
The Global Wealth and Family
Ties report says individually-run fortunes are growing
faster, and while 58% of fortunes in all sectors as a whole are
managed by individuals, in the tech sector this rises to 76%.
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This trend holds across geographical borders,
with only half of India’s technology companies run by family
businesses while 73% of all fortunes are family-run.
Youthful tech
billionaires
Technology billionaires tend to be younger; many are still
single, and they make their fortunes largely with friends rather
than family.
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By GlobalDataThe report concludes it remains to be seen
whether the progressive attitudes to business, management and
philanthropy practiced in the sector will spread to other
industries.
The conclusions come from an analysis of 1,253
of the world’s largest fortunes in 12 countries.
The individuals studied had a minimum net
worth of $1bn with the exception of those from India ($370m), China
($500m) and Singapore ($210m).
Family fortunes
The highest percentages of fortunes that are
family run are in Hong Kong (75%), India (73%), France (64%) and
the Middle East (62%).
The lowest percentages of family run fortunes
are in Russia (19%), the UK (25%) and China (33%), with 42% in the
US.
In general, mature markets have more inherited
wealth and more fortunes run by families, the report says.
In emerging markets, 61% of the fortunes had
no family involvement in the businesses, while in the mature
markets the figure was 54%.
Wealthy women on the rise
In the US, self-made fortunes accounted for
69% of the total in 2011, having risen from 55% in 1997, driven to
a large extent by the acceleration of fortunes made from new
technologies.
There is a uniquely high number of self-made
women among the richest in China, while in Russia the
entrepreneurial super-rich are younger than in Western Europe and
have friends as business partners rather than family.
In India family-run fortunes still account for
73% of the total, but there are signs that more business groups are
starting to separate family and management.
The Middle East has one of the highest ratios
of family involvement in business worldwide due to the influence of
Arab culture.
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