Fall 1999

Every business owner knows how troubling the tough decisions can be. A longtime, ?loyal employee might not be the best person for that promotion he thinks he deserves. A junior executive who's been groomed to take on new responsibilities seems to lose interest. And, perhaps heading the list of emotionally wrenching situations, an entrepreneur decides it's time to retire, but there's no one in the company she trusts to take over the business she spent a lifetime building.

While these are the kinds of situations that might keep any business owner awake at night, they become even more difficult when the employees in question are also relatives.

"When business relationships are intertwined with family relationships, a whole new set of professional problems and personal issues arises," says James O'Neill, professor of economics and director of UD's Family Business Center. The Center, which opened in January 1999 within the College of Business and Economics, specifically addresses concerns that are unique to family-controlled businesses--only 30 percent of which make it to the third generation.

From the start, Center organizers brainstormed with local family business people to find out how to best meet their needs. As a result of those conversations, the Center offered a series of seminars in which experts discuss various aspects of family businesses. Each session also features opportunities for the participants to share their own experiences and seek advice, either in one-on-one conversations with the speaker or in group discussions. As the Center's membership grows, O'Neill says he hopes to offer additional resources such as periodic reports summarizing pertinent new research and an online question-and-answer service.

The first seminars have won enthusiastic reviews. "I would encourage people who have concerns--maybe a concern they've been turning over in their minds for years--to take the first step and attend one of the seminars," says Wilmington businessman Frank Ursomarso. "Every time I've attended, I've come away with knowledge and information I didn't have before, as well as a new perspective from hearing other people's stories."

Ursomarso, whose father founded Union Park Automotive nearly 45 years ago, today runs the business with the help of his son, Frank Jr., a 1989 UD graduate. The senior Ursomarso has already named his son to take over someday, but he says the question of retirement and succession raises especially difficult issues for many entrepreneurs. Some may have children who aren't interested in the business, while others may have to choose one child as the successor.

"The succession issue is underlying every family business," says O'Neill. But the Center helps with other issues, too, including how to make the best personnel decisions, strengthen management skills and improve communications. Ultimately, O'Neill says, family businesses have to solve the same problems as any other enterprise: "The market is competitive. If you're not holding your own, the market is going to let you know."

For more information about the Center and its programs, contact the UD Family Business Center at (302) 831-0743 or (302) 831-2559.