2. OBJECTIVES:
• The importance of family business in the
local and global economy.
• Discuss the unique challenges and oppor-
tunities associated with running a family
business.
•. Recognize the value of family business
cohesion and governance in successful
family business.
3.
4. ECONOMIC IMPACT
• Family businesses are significant contributors to
the local economy.They generate revenue, pay
taxes, and invest in their communities.Their
operations create jobs, stimulate economic activity,
and contribute to the overall prosperity of the
region.
5. JOB CREATION
Family businesses are often major employers,
providing employment opportunities for both family
members and non-family members.By creating jobs,
they help to reduce unemployment rates and
improve the standards of living their communities.
6. LONG-TERM PERSPECTIVE
Family businesses tend businesses tend to have a
long-term perspective, focusing on sustainable
growth and generational wealth.This approach
fosters stability and resilience, as they prioritize the
long-term success of the business over the short-
term gains.
Running the family businesses presents unique
challenges and opportunities.
7. CHALLENGES
SUCCESSION PLANNING
One of the most significant challenges for family
businesses is planning for leadership succession.
Ensuring a smooth transition from one generation to
the next requires careful consideration of family
dynamics,skills, and capabilities. It involves
addressing potential conflicts and preparing the next
generation to take over the business.
9. PROFESSIONALIZATION
Need to strike a balance between maintaining their
family values and adopting professional management
practices. As the business grows,it becomes essential
to implement formal governance structures,
professionalize operations, and hire non- family
executives
10. OPPORTUNITIES
STRONG VALUES AND CULTURE
Often have a strong sense of values and culture,
which can be a competitive advantage.These values
can shape the companys identity, build customer
loyalty, and defferentiate it from competitors.
Customers often appreciate the personal touch and
authenicity that family business bring.
11. AGILITY AND FLEXIBILITY
Family business can be more agile and flexible in
decision-making compared to larger corporations.
Thay can quickly adapt to market changes,seize
opportunities, and implement innovative ideas. This
agility allows them to respond to customer needs
and stay ahead of the competition.
12. TRUST AND COMMITMENT
Family businesses benefit from the trust and
commitment that comes with family cohesion.
Family members are often deeply invested in the
success of the business, leading to a strong work
ethic and dedication. This commitment can foster a
positive work environment and enhance customer
relationships.
13. Family cohesion and governance are the vital for the
success of a family business. When family members have a
shared vision, open communication, and mutual respect,
it strengthens the business foundation. Establishing clear
governance structures, such as family councils or boards,
helps in making important decisions, resolving conflicts,
and ensuring fairness. Effective governance ensures that
the businesses interest align with the familys and long-
term goals.
