Family entrepreneurship represents a specific form of business where family relationships and business activities are intertwined, resulting in unique characteristics and challenges. Family businesses are often passed down through the generations, fostering values such as loyalty, tradition and long-term sustainability. The theoretical part of the paper defines a family business as a business entity owned by the family, with family members involved in key positions and decision-making. Various authors emphasize that it is crucial to understand the degree of family control over the company and the way in which the family influences decisionmaking. The typology of family businesses distinguishes active family businesses, family businesses with absent owners and latent family businesses, with each type having specific advantages and challenges. The advantages of family businesses include a strong bond between family members, a longterm orientation and an emphasis on quality and preserving tradition. Family businesses often provide stability, loyalty and a high degree of motivation within the family, which makes them resilient to the challenges of the global economy. However, family businesses also face numerous limitations, such as nepotism, overlapping family and business roles, and potential conflicts of interest within the family. Lack of professionalism and specialized knowledge can be an obstacle to long-term growth. The empirical part of the analysis focuses on the life cycle of a family business through three key dimensions: family, ownership and business. This approach enables a deeper understanding of the interrelationships and interactions between the family that manages the company, the ownership model, and the operational business processes at different stages of the company's development. The analysis is based on the key characteristics, challenges and transitional stages in each of these dimensions and their impact on the overall success and sustainability of the family business.