01/05/2014
In a questionnaire included more than 1,900 family companies in the world
80 percent of companies in the Middle East owned by families or business subject to control
5% to 8% of family businesses fail to continue beyond the third generation
Emphasis on the presence of vision for the future with the family and to ensure business success
Middle East area manager for entrepreneurial projects and clients in the private sector the company Pricewaterhouse Coopers family business company Secretary Browse Nasser Ameen ' key results of the survey the views of family firms in the Middle East ' the ' challenges of balancing data and family relations ', prepared by the company, where it was held 1952 interview in 28 countries in Asia, Europe and Latin America, the Middle East and North Africa.
Nasser said during the show that family companies in the Middle East started as entrepreneurs by 50 or 60 years, during which he has succeeded in diversifying its investments and the establishment of a number of successful trade blocs are still an important source of economic activity and employment. Noting that more than 80 companies in the Middle East either owned by families or under its supervision, Nassir noted that, based on the survey data, most family businesses in the second generation, and many of them will see a shift at that level over 5 to 10 years, so the question of succession is of great concern, some of the GA companies to develop more structured governance process and less dependent on charismatic leaders, especially if we know that 5 to 8 From family business to succeed to continue beyond the third generation, that 50 family companies planning to pass the business on to the next generation, while the 28 to pass ownership to the next generation with the assignment of responsibility to individuals outside the family, and expects 20 of family disputes occur, families as a result of the succession of generations.
Nasser said that there are important issues facing family businesses in the Middle East, including family subjects, including business topics, either (family issues) are the family and the complexity of the work, and the transition from current generation to next generation (Caliphate), the involvement of family members without activity, choose future leaders in family, orientation and training of the next generation and reinvestment of profits or dividends, and building strong business relationships between family members, and agree on a process for resolving disputes. And either (themes), which determine the company's future strategy, decision-making and majority rule, family representation in the Board of the holding company, the performance of the family involved in the company, determine the wage levels of family members working in the company, the agreement on the conditions and procedures for the exit of the family business.
Nasser stressed the importance of having a vision for the future of the family, and be keen to business success. It is very easy to have a different family from the next generation of conflicting objectives, to have family planning for succession (successive generations), which pose the greatest threat facing all family businesses. There are two foci of this danger: the owner succession and succession management, conflict is always and never in a family business, so is management the key differences not only to business continuity, but for the survival of the family itself. Nasser described the performance of family firms in the Middle East as a ' good ', they were less affected by global economic conditions of the family business in other States, there was optimism about growth in the next five years (it has grown by 83 in the past 12 months, compared with 63 globally), but development and attract the right skills and talent are among the main challenges, it has become more challenging in 2012 (male 45 participants in the resolution of this problem compared with 34 in 2010) ... the family business interested in discussions At the level of boards of Directors about global challenges, growth and strategy, operations and profitability rather than family issues or differences. Nasser said that obtaining funding is a challenge, so it is no longer ' lending at the infamous ' favorite financial institutions, prefer family businesses benefit from public budgets or selling assets of the family , the cash flow and cost control of main themes suggest the need for further action on internal operations and working capital management and other topics. Nasser said that there are a number of important topics in 2010, companies themselves are not changed in 2012 which will be present in the coming months also from recruiting skilled labor (labor shortages), restructuring of the company (management model), cash flow (cost control), in addition to market conditions, competition, regulations, legislation or public spending. He recalled that some of these topics will be key challenges for family businesses during the next five years.
And about the steps taken by families to meet these challenges, ' says Nasser depending on the results of the questionnaire on chapter topics on subjects of business property (separate forums for family and business, the involvement of family members who are active), a good mechanism for corporate governance, accountability and reporting to the Board of the holding company and the shareholders, communications with shareholders, and establish rules for family (the ownership subjects, drawing clear lines between family and work, the rules of family relations), in the framework of ensuring fairness (equal treatment of members of the family And equity), \ a mechanism to resolve differences (such as third-party arbitration). Nasser addressed the idea of a Constitution for the family is a product of meeting family members of past and future generations to put together rules that define business relationships, roles and responsibilities and powers, and the boundaries between work and family, and the family members in this process to evaluate alternative options and find practical solutions to the continuity of family businesses in future generations, it is important that the rules are based on what is good for the company is also a good for the individual , the rules cover family share ownership and the structure of the holding company.
