Family businesses have always played a vital role in the world’s economy. In many countries, they make up the majority of companies and are responsible for creating thousands, if not millions, of jobs. They’re often built on strong values, a long-term vision, and a deep commitment to their communities. But as markets evolve and competition increases, family-owned businesses face a new challenge: how to grow without losing what makes them unique.

One solution that more family businesses are turning to is international business expansion.

Expanding into international markets isn’t just about increasing sales. It’s about protecting the legacy of the business, staying competitive, and securing long-term growth. In a globalized world, opportunities lie beyond borders. And for family-run companies, that means adapting and moving forward—while still holding on to their core identity.

According to PwC’s Global Family Business Survey, 77% of family businesses are planning to grow in the next two years, 14% expect to grow “quickly and aggressively,” and 51% say expanding into new markets is a top priority. Internationalization should be a key part of that strategy.

In this article, we’ll break down why internationalization matters for family businesses, the main challenges they face, and practical steps to make it work. We’ll also look at real-world examples from companies in Mexico, Peru, and the United States that have successfully gone global.

What are the Unique Strengths and Weaknesses of Family Businesses?

Family businesses have some clear strengths that can help them succeed in global markets, but they also face specific challenges. Understanding both is key to building a strong internationalization strategy.

Inherent Advantages of Family Businesses

• Long-Term Vision and Sustainability

Unlike many publicly traded companies that focus on short-term profits, family businesses often think in decades. This long-term view helps them invest wisely when expanding internationally, even if it takes time to see a return.

• Strong Culture and Values

Many family businesses are known for their integrity, customer loyalty, and people-first approach. These values can become a competitive advantage when entering new markets, especially where trust is important.

• High Commitment and Fast Decision-Making

In smaller or closely held companies, decisions can be made quickly. That agility helps when responding to international challenges or new business opportunities abroad.

Inherent Challenges of Family Businesses

• Mixing Family and Business Interests

It’s not always easy to separate family dynamics from business decisions. This can slow down or complicate efforts to expand.

• Resistance to Change

Some family businesses prefer to “do things the way they’ve always been done.” This mindset can make it harder to adopt new systems, explore new markets, or take on risks—things that are necessary for international business expansion.

• Generational Transitions

Passing the business to the next generation doesn’t always go smoothly. If leadership isn’t aligned, global expansion plans can stall or fail.

• Limited Access to Capital

Many family businesses avoid taking on outside investors. That can make funding an international expansion strategy more difficult.

How Important Are Family Businesses Around the World?

Family businesses are the backbone of many economies worldwide. They create jobs, contribute significantly to GDP, and carry forward traditions and values through generations. 

• Mexico: Around 90% of all businesses in Mexico are family-owned. Together, they contribute about 85% of the country’s GDP. That means most of Mexico’s economy depends heavily on family businesses. However, only about 12% of these companies make it past the third generation. This shows the challenge of keeping the business thriving over time.
• Peru: Family businesses make up roughly 80% of all companies and provide up to 70% of formal employment. This means that they are essential not just for the economy but also for the jobs market. Yet, only 10% survive to see the third generation take over, showing a similar struggle to maintain longevity.
• United States: Family businesses generate more than 50% of the country’s GDP. The U.S. is home to 7 of the world’s 10 largest family-owned companies. This highlights how family businesses can grow big and still stay in the family, blending tradition with global business expansion.

These numbers clearly show how vital family businesses are to national economies and communities. But they also point out a big challenge: many family businesses struggle to last beyond a couple of generations. 

That’s why thinking about growth, especially through international business expansion, is so important. Expanding into new markets can help family businesses stay competitive, grow stronger, and ensure their legacy lasts for generations to come.

Why Internationalize?

There are many good reasons why family businesses should explore international business expansion strategies.

• Market Diversification and Risk Reduction

Relying on one country or region is risky. Economic downturns, inflation, or political instability in the home country can hurt profits. Expanding into other markets spreads that risk.

• Access to New Customers and Revenue

Internationalization opens the door to millions of new consumers. It can also lead to longer product lifecycles, especially if a product that’s mature in one market is new in another.

• Competitive Edge

Many global players are entering local markets. Family businesses must step up to compete—or risk being left behind.

• Use of Unique Strengths

Family businesses often have specialized knowledge, local resources, or artisanal products that can be highly valuable abroad. These strengths can set them apart in foreign markets.

Common Challenges in the Internationalization Process

While the benefits are clear, internationalization isn’t easy. Here are some of the most common roadblocks:

• Resistance to Change

Longstanding business cultures may be wary of unfamiliar markets or new ways of operating.

• Lack of Organizational Structure

Without a strong management team or clear internal processes, expanding abroad can become chaotic.

• Financial and Regulatory Risks

Navigating tax systems, trade regulations, and local laws requires time, money, and expertise.

• Generational Misalignment

Sometimes, the younger generation is eager to grow globally, while the older generation prefers to stay local. This gap can lead to conflict or indecision.

Key Success Factors for Going Global

To create a strong international business expansion strategy, family businesses should focus on these essentials:

• Strategic Planning

Before you start selling in new places, know why you’re doing it. Pick the right countries and set clear goals. It’s not just about making more sales — it’s about growing in a way that lasts. Having a good plan helps you avoid mistakes and keeps everyone on the same page.

• Professional Management

Sometimes, family businesses need to bring in outside experts or managers. These people know about international markets and can help guide the business. They can identify problems early and make more informed decisions, allowing things to run more smoothly.

• Global Talent Development

Doing business in other countries means understanding different cultures and ways of working. Train your current team or hire local people who know the market. Having staff who get how things work locally makes a big difference.

• Building Networks and Partnerships

It’s easier to succeed if you have good partners. Work with trade groups, government agencies, or local companies that can help you enter new markets. These connections can help you with rules, finding customers, and getting started faster.

Focusing on these key points can help a family business grow successfully outside its home country. It’s not always easy, but with the right approach, it’s definitely possible.

Practical Recommendations for Family Businesses

If your family business is considering international business expansion, here are some practical steps to take:

• Start with an Internal Assessment

Before expanding, assess your company’s current strengths and weaknesses. Are your finances healthy? Is your leadership ready to manage new operations? Is your brand strong enough for international markets?

• Choose Markets Carefully

Not every country is a good fit. Look at factors like language, culture, ease of doing business, and demand for your product or service. Use tools like the World Bank’s Ease of Doing Business Index or trade reports from ProMéxico, ICEX, and other agencies.

• Begin Small: Digital or Indirect Exports

You don’t have to build factories abroad from day one. Start with online sales, or use distributors to test the market.

• Seek Institutional Support

Government agencies and trade organizations offer funding, training, and market research. For example:

• ProMéxico (Mexico)
• ICEX (Spain)
• Binational Chambers of Commerce (Global)

Real-World Case Studies of Successful Internationalization

Mexico

• Grupo Bimbo: One of the world’s largest bakery companies, Bimbo is present in over 30 countries. Their success comes from adapting to local tastes while maintaining brand values.
• FEMSA: With operations in Latin America and Europe, FEMSA diversified early and now operates convenience stores, bottling plants, and more.

Peru

• Grupo Gloria: A major player in dairy and food products, this family-owned conglomerate has operations across the region.
• Renzo Costa: Known for high-quality leather goods, this brand now exports worldwide.
• Pucayagro: This Peruvian aquaculture company exports paiche, an Amazonian fish, to Asia and the U.S., showing how even niche products can thrive internationally.

United States

• Walmart: Still family-controlled, Walmart has stores in 27 countries and continues to lead with supply chain innovation.
• Dell Technologies: Founded by Michael Dell, this tech giant serves customers globally, with a presence in over 180 countries.

Interested in Discussing How Internationalization Can Help Your Family Business? Connect with Us 

If you need help navigating challenges such as entering new markets, planning for the next generation, and developing the right legal strategy to support global growth, we’re here to guide you.

If your family business is thinking about expanding internationally, contact us today. Ask questions, get advice, and learn more about how Saltiel Law Group supports businesses like yours through each step of the internationalization process.