ABSTRACT

The family firm has received mixed reviews in economic history. For a long time it has been portrayed as an obsolete form of organisation which retarded economic growth in the advanced stages of industrialisation. Recently, the picture has changed somewhat. Now, while its dynamic influences on economic development are stressed, the perseverance and flexibility of the family firm are pointed out. The purpose of this paper is to place the recent findings on the German family firm in the context of this debate. Particular emphasis will be put on the results of studies dealing with entrepreneurial history in the framework of the history of the whole German Eürgertum (the middle classes). My argument is that the family firm and the entrepreneurial family continued to play an important role in the German economy after the first stage of industrialisation. They proved to be adaptable to the requirements of the economies of scale and scope and found niches to survive. Moreover, their existence rested on strong cultural foundations which did not weaken during the second half of the nineteenth century.