LOUISVILLE, Ky. (December 12, 2008)--Kathleen Hoye has been named director of the UofL College of Business Family Business Center, Dean R. Charles Moyer announced today.
     The selection of Hoye to lead the Center’s re-launch indicates the college’s intention to be the region’s premier provider of research and support services and expertise for family-owned businesses, Moyer said.

     “Kathleen’s career is a history of innovation, change and problem solving,” he said.  “Her new business plan for the Center will make it an integral part of our entrepreneurship programs and a key resource for family businesses in Kentuckiana and beyond.”
     Hoye is the former executive director of the Greater Louisville Small Business Development Center and has more than 15 years experience in business operations, budgeting and financial management.  She also has extensive entrepreneurial experience in development and marketing in the non-profit sector, including a stint as director of the Vogt Invention and Innovation Fund.
     She believes the UofL College of Business, with its new Forcht Center for Entrepreneurship, is well positioned to be the leading resource of information and expertise for closely held family businesses.  Originally established in 1993, the Center is one of the oldest and most-respected in the nation. Hoye is charged with expanding its services to reflect global economic trends and contemporary family business dynamics.
     “Our focus will be to inform, celebrate and strengthen family-owned businesses,” she said.  “They are leaders in job creation, innovation and philanthropy, but because of their unique challenges, up to two-thirds of them do not survive into the second generation.”
     Research indicates up to 80 percent of all businesses are family owned and they employ approximately 62 percent of the U.S. workforce.  The Center’s mission will target the 17 most-common challenges facing family-owned businesses.
     Hoye said the Center will provide expert business coaching, peer learning opportunities and access to data that will help family-owned businesses grow through critical milestones. Behavior counseling for problems unique to family-owned business also will be available. The services will be provided by leadership and executive training organizations in conjunction with the college’s faculty and students.  Company tours, guest speakers and affinity group roundtables will provide additional professional learning opportunities.  Hoye wants to expand international connections for family-owned businesses as well.
     Center memberships will be fee-based and provide access to all services. 
     “We’re building an interactive website we believe our members will want to use as their home page,” she said.  “In addition to information about our events, it will be a clearinghouse for news of interest, blogs,  links to services and data, and a place they can come to discuss and solve common problems.”
     Plans also include launching an e-newsletter during the first quarter of 2009. To be included in the distribution, interested persons should send a request to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .      
     The Center will be funded in part by five strategic corporate partners whose leadership will provide advisory services to the Center. Businesses interested in strategic partner opportunities and benefits should contact Hoye.
     For more information:  Kathleen Hoye 502.852.1048 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

17 challenges facing family-owned businesses

1.  Growth limitations.  Lack of capital and resistance to re-investment in the business or pursuit of outside resources artificially stunts growth. 

2. Non-business issues. Family problems, including health issues, marital affairs and financial problems create difficult political situations for other family members.

3. Soft structure. The frequent lack of clear policies and business norms for family members may lead to operational confusion.

4. Limited vision. Lack of outside input on how to operate the business, as well as competing visions held by various family members may limit new opportunities

5. No written strategy.  Long and short-term plans often remain undocumented.            

6. Compensation issues. Compensation and benefits for various family members may not  reflect their actual participation or may conflict with non-family compensation packages.  

7. Who’s in charge of what?  Poor definition of roles and responsibilities limits accountability and efficiency.

8. Skills and talent. Family members may lack the skills and abilities necessary for their positions but it may be impossible to fire them. 

9. High turnover.  “Outsider” employees may sense that family members will always advance quicker; also they may become frustrated with family-directed management.

10. Succession planning. Uncertainty as to if, how and when the next generation will take control is the omnipresent elephant in the room.

11. Poor training. Integrating family members into the company is often automatic rather than systematic.

12. Paternalistic leadership. Tradition and family respect tend to override the pursuit of improved management practices.

13. Resistance to change.  The desire to keep the status quo can frustrate younger family members and prevent the adoption of new ideas.

14. Communication problems. Relationships within the family, rather than a clear process, drive communications, leaving them subject to motivation by anger, frustration or envy.

15. Exit strategy. Little or no attention may be paid to how to sell, close or merge the business.

16. Valuation questions. No focus on what the business is worth or what will make it more or less valuable puts family members at odds with the marketplace.

17. Control issues. Family members with little day-to-day participation may have unusually high levels of control.