Historically family business has been the agenda of many research initiatives from academic anthropologists and historians since the 19th century. There’s a lot of history noted in the evolution of family systems of organization and structures of social life in post 1940s. The family system had been a focus of many dissertations of European and North American scholars since the 1940s drawn from theories culled from extensive field research developed in Africa, South America, Oceania, and Asia. What our local and global facts are telling us is that families in business and their family enterprises are significant enough to warrant attention in our government development agenda and in our policy formulation. It begs the question: Why is it not in our agenda and why is not being factored into our economic development policies?

2. [This page intentionally left blank.]

3. The Family
Business:
Statistics,
Impact, and
Dynamics
Virgilio Y. Paralisan

4. [This page intentionally left blank.]

5. Contents
Introduction ..................................................................................................................................................7
Statistics on Family Businesses.....................................................................................................................1
Global Statistics on Family Businesses......................................................................................................1
Local Statistics on Family Businesses........................................................................................................2
Impact of Family Businesses .........................................................................................................................3
Impact of Family Businesses to the Global Economy ...............................................................................3
Impact of the Family Businesses to the Local Economy ...........................................................................4
Understanding the Dynamics of a Family in Business Using the 3-Circle Model of Family Businesses........6
The Family Pains and Gains.......................................................................................................................6
Emerging Tension in an Evolving Family Business ....................................................................................8
Five Attributes of Enduring Family Businesses .........................................................................................9
The 3-Circle Model of Family Businesses................................................................................................10
Maximizing and Developing Family Enterprises .........................................................................................15
Challenges of Developing Family Businesses..........................................................................................15
Strategy for Maximizing and Developing Family Enterprises .................................................................16
References ..................................................................................................................................................18
Virgilio Y. Paralisan: A Profile......................................................................................................................20

6. [This page intentionally left blank.]

7. Introduction
Historically family business has been the agenda of many research initiatives from
academic anthropologists and historians since the 19th century. There’s a lot of history
noted in the evolution of family systems of organization and structures of social life in
post 1940s. The family system had been a focus of many dissertations of European and
North American scholars since the 1940s drawn from theories culled from extensive
field research developed in Africa, South America, Oceania, and Asia.
Based on 2015 statistical data provided by the Philippine Statistics Authority (PSA),
there are 900,914 establishments in the Philippines. PFBC is looking only at the
population of medium to large enterprises.
Based on the National Statistics Office (NSO) and Small and Medium Enterprise
Development Council Resolution No. 1 Series 2003, medium enterprises are
enterprises with 100-199 employees and with total assets of 15 to 100 million pesos
while large enterprises are enterprises with 200 or more employees and having a total
asset of 100 million pesos or more.
In a report on founder and family-owned businesses released by McKinsey & Company
in 2014, it revealed that one-third of the Fortune Global 500 companies were family or
founder controlled including 40% of major listed companies in Europe. Across the other
continents, here's more data: Southeast Asia the family owned or controlled enterprises
are as high as 85% of registered companies, 67% in the Middle East, and 75% in Latin
America.
In 2015, the Center for Family Business at the University of St. Gallen (Switzerland), in
collaboration with EY Global Family Business Center of Excellence, indexed the top 500
family businesses around the globe.
Almost half of the 500 or 238 firms are based in Western Europe. 153 of them are in the
Eurozone economies namely Germany with 94 firms, Italy with 31, and France with 28.
The United States is home to 101 of these largest family firms while the Asia-Pacific is
home to 60 family businesses in the Top 500 with India contributing 25 firms.
Latin America has 36 family firms on the list while the Middle East (including Turkey and
Israel) have 14. There was one family firm in the sub-Saharan Africa in South Africa.
What our local and global facts are telling us is that families in business and their family
enterprises are significant enough to warrant attention in our government development
agenda and in our policy formulation.
It begs the question: Why is it not in our agenda and why is not being factored into our
economic development policies?

8. 1
Statistics on Family Businesses
Global Statistics on Family Businesses
Although it is popularly perceived that modern corporation are already mostly run by
professional manager or executives, a lot of the world’s enterprises are still controlled
by families or the State (La Porta et. al., Journal of Finance, 1999)1.
According to Christine Blondel, an adjunct professor at the Wendel International Centre
for Family Enterprise at INSEAD, about 80% of enterprises worldwide are family-owned
companies (some publicly traded, some private, non-traded).2
Family firms account for 2/3 (two thirds) of all businesses around the world (Interview
with John Davis, Harvard Business School) 3
Family businesses make up between 70 and 95% of all business entities in most
countries all over the world (European Family Businesses, 2012)4
65% of family businesses are looking for steady income growth over the next five years
(PWC, 2012)5
Based on 2013 data, McKinsey & Company estimates that a growing number of family-
owned enterprises in emerging markets could achieve $1 billion in sales from 2010 to
2025. 6
85% of European start-up companies are established with capital coming from family
money (European Family Businesses, 2012).7
In Asia, more than 70 percent of enterprises are family-owned firms and across 10
Asian markets family enterprises account for almost half of all companies listed in the
stock market accounting for 32 percent of total market capitalization.8 57 percent of
1
(Family Firm Institute)
2
(Wharton School of the University of Pennsylvania, 2016)
3
(Family Firm Institute)
4
(Family Firm Institute)
5
(Family Firm Institute)
6
(Björnberg, Elstrodt, & Pandit, The family-business factor in emerging markets, 2014)
7
(Family Firm Institute)
8
(Hay Group, 2012)

9. 2
South Asia and 32 percent of North Asia employees of listed companies are employed
by family owned enterprises.
Local Statistics on Family Businesses
There’s very little research on family businesses in the Philippines. Even those that
have been undertaken do not provide enough sample population to create conclusive
information about family businesses in the country.
The Philippine Statistics Authority (PSA) has statistics on Family Health and Family
Income including expenditure data but no baseline for family businesses. PSA has even
good data on Poverty and Income Gaps including classifying families statistically as
upper class, middle class, and lower class.
It is estimated that about 80% of registered businesses in the Philippines are family-
owned.9 And most big corporation are still family-owned or family controlled with the
founding families still at the helm, namely: Metrobank (George Sy Family), Ayala
Corporation (Ayala family), J.G. Summit Holdings (Gokongwei family), ABS-CBN and
Meralco (Lopez family), and SM Prime Holdings (Henry Sy family).
It is ironic that a sector which in most developed and developing countries absorbs
about 50% to 80% of the workforce among the MSMEs is not considered a relevant
statistics in most statistical data gathering in the Philippines.
9
(Johnston, 2004)

10. 3
Impact of Family Businesses
Impact of Family Businesses to the Global Economy
According to the 2015 Global Family Business Index from the University of St. Gallen
and Ernst & Young (EY), the 500 largest family firms worldwide may just as well be the
third-largest economy considering that its combined annual sales amounted to $6.5
trillion.”10
These data have consistently shown the impact of family enterprise with an estimated
70%-90% of global annual GDP attributed to family businesses.11
The sustainability of family businesses provides stability in the markets because they
tend to have long-term perspective in their direction and strategy. Very few listed
companies have 20-year plans because most often top executives are only there for the
short-term with goals most likely designed to appease shareholders also for the short
term. This is also the same reason why family businesses tend to look at employee
relationships in the same terms.
In the job market, between 50%-80% of jobs in the majority of countries worldwide are
created by family businesses (European Family Businesses, 2012)12
Tharawat Magazine summarized the economic impact of family businesses as follows:13
• Family businesses show higher profitability in the long run
• Family businesses are less likely to lay people off and more likely to hire despite
the possibility of an economic downturn
• Family businesses have a more long-term strategic outlook due to their main
motivation consisting of creating a legacy for generations to come
• Family businesses are less likely to raise debt and are widely deemed financially
prudent
• Family businesses are more likely to give charitably to their respective
communities and engage in extensive philanthropic activities
Here’s more statistics on the impact of family business from across the globe courtesy
of the Family Firm Institute or FFI:
10
(Wharton School of the University of Pennsylvania, 2016)
11
(Family Firm Institute)
12
(Family Firm Institute)
13
(Economic Impact of Family Businesses - A Compilation of Facts, 2016)

11. 4
China
• 85.4% of China’s private enterprises are family owned (Sun Yat-sen
University, Zhejiang University and Hong Kong-based family firm Lee Kum
Kee, 2010)
• Next generation of wealthy family business owners in China have
expressed an overwhelming desire to keep succession within the family
(FT, 2014)
Europe
• European family businesses represent 1 trillion Euros in turnover (60% of
all European companies) (KPMG, 2013)
• Family businesses account for 9% of the European Union’s GDP (KPMG,
2013)
• Family businesses create over 5 million jobs in Europe (40-50% of all
employment) (KPMG, 2013)
India
• Family companies account for two-thirds of India’s GDP (KPMG, 2013)
• Family businesses account for 90% of gross industry output
• 79% of organized private sector employment is generated by family
businesses (KPMG, 2013)
• 27% of overall employment is generated by family firms (KPMG, 2013)
• 13% of family businesses survive to 3rd generation and only 4% survive to
the 4th generation (KPMG, 2013)
Middle East
• Most of the region’s GDP, outside the oil sector, and over 80% of its
businesses, are either family-run or family controlled (PWC, 2012)
United Kingdom
• UK family firms generate 25% of the total UK GDP (PWC, 2012)
• Three-quarters of family businesses in the UK have procedures in place to
deal with issues/conflict between generations (PWC, 2012)
United States
• At least half of all companies in the US are family businesses (Harvard
Business School)
• Just over half of all publicly listed companies in the US are family owned
(Harvard Business School)
Impact of the Family Businesses to the Local Economy
MSMEs drives twenty-five percent (25%) of the Philippine’s total exports revenue. It’s
estimated that 60% of all exporters in the Philippines are classified as MSME. MSMEs

12. 5
contribute to export revenues via subcontracting arrangement with large firms, or as
suppliers to companies who export.14
Registered business enterprises in 2015 created 7,766,689 jobs of which 61.6% were
created by MSMEs and contributed as follows: 2,285,634 or 29.4% were generated by
Micro Enterprises, 1,968,452 or 25.3% by Small Enterprises, 530,784 or 6.8% by
Medium Enterprises, and 2,981,819 or 38.4% by Large Enterprises.15
Since 80% of these MSMEs are most likely going to be family-owned, it is easy to
assume that most of the jobs created were attributed to family businesses.
14
(Department of Trade and Industry, Republic of the Philippines)
15
(Department of Trade and Industry, Republic of the Philippines)

13. 6
Understanding the Dynamics of a
Family in Business Using the 3-Circle
Model of Family Businesses
Contrary to the popular image of modern corporations as being widely held and run by
professional managers, many of the world's firms continue to be controlled by families
or the State.16 Because the far reaching impact of family enterprises, the need to
understand the dynamics of the families in business is a strategic endeavor worth
exploring by academe, governments, consultants, strategic corporate leaders, and
family members.
The Family Pains and Gains
Premier Family Business Consulting or PFBC, a multi-disciplinary family business
consulting firm founded by Filipino entrepreneurs and consultants, declared that most
families may not publicly admit the issues they confront. Premier Family Business
Consulting have served families in business for more than half a decade and they have
seen the emerging dynamics in modern Filipino families in business. This is what they
found out about their clients.
The Customer Has a Job to Do
PFBC customers are trying to get things done in their work and in their lives.
PFBC see this job very often coming in the form of…
• Constantly making decisions for family and the business.
• Protecting family assets against debt/legal claims.
• Preparing estate tax obligations.
• Resolving family conflicts.
• Choosing successors.
• Mentoring family members to manage the business.
• Keeping the business competitive and profitable
• Solving ownership issues.
• Distributing properties among family members.
• Taking care of family member with special needs and addictions.
• Assigning business to family members.
• Paying for medical or emergency expenses.
• Paying for real property & other income taxes.
• Paying for lifestyle of family members.
• Seeking investment opportunities.
• Taking care of aging family members.
16
(Family Firm Institute)

14. 7
• Planning and saving up for education of family members.
• Planning and saving for retirement.
• Professionalizing the family business.
• Incorporating the family business.
• Keeping and improving family relationships.
• Ensuring family welfare.
• Taking care of the family name and honor.
• Keeping family members to work together as a team in the business
The Customer Wants PFBC to Hear, Feel and See Their Pains
Pains describe bad outcomes, risks, and obstacles related to what PFBC
customers are doing. These pains come in many forms…
• Younger generation is not responsible and taking accountability of
their work.
• Younger generation is not interested in the family business.
• Older generation is not adapting and not sharing power.
• Older generation does not trust and listen to the younger
generation.
• Older generation has too high expectations.
• Elders have difficulty in choosing successors.
• Fear of the founder to losing control of the business.
• Fear of risk of losing the business due to the lack of successor’s
experience.
• Overspending of family members.
• Difficulty in working together.
• Issues on equality and fairness.
• Family member rivalry.
• Unresolved family conflicts.
• Huge estate taxes.
• Family assets are heavily exposed to business risks.
• Unclear decision-making process.
• Lack of transparency.
• Absence of appropriate compensation structure.
• Co-mingling of funds between family and business.
• Conflicts due to lack of policies both in the family and business.
• Difficulty dealing with in-laws.
• Unsuccessful marriage and illegitimate children.
• Losing key non-family employees in the business
• Underperforming employees, both family and non-family
• Lack of reliable, objective and fair system and mechanism in the
management of human resource
• Lack of trusted and competent non-family employees
• Lack of direction
• Unclear and conflicting roles and functions in the business

15. 8
What PFBC Client Families Want to Achieve or What Benefits They
Seek
Gains describe the outcomes customers want to achieve or the concrete
benefits they want to receive from PFBC services. These are the most
common outcomes PFBC client families expect…
• Strengthen family unity.
• Manage family conflicts better.
• More open decision-making atmosphere in the family.
• Clearer guidelines and policies for family members.
• Manage & minimize impact of taxes.
• Better management of family health care.
• Help family make better collective decisions.
• Smarter management of inherited properties.
• Better management of risks.
• Clear succession process.
• Better and clearer ownership structure for smoother succession
• Better prepared for estate obligations.
• Better roadmap in accumulating individual wealth.
• Establish a direction of the family.
• Sustaining a defined culture of unity and prosperity.
• Maintain quality of life & lifestyle.
• Enhanced decision-making in the business
• Better governance system in the business
• Clearer direction and planning in the business
• Better human resource system in managing employees to perform
better
• Being more fair, competitive and objective in running the business
• Better prepared successors for the business
• Clarification of roles and functions of family members
Emerging Tension in an Evolving Family Business
According to McKinsey & Company’s Björnberg, Elstrodt, & Youssef in their article,
Building a house that lasts: A framework to guide a succession from few owners to
many, as a family grows and evolves over time, it undergoes a wave of tensions. They
cited this four critical tensions:
1. The business as a source of family pride and an unquestionable tradition versus
the business as a financial investment. The tension arises among family
members when they come to a crossroad where they have to decide whether to
operate, own, own and operate, or simply just be an investor of an enterprise.
2. Growth, risk taking, and wealth creation versus liquidity, risk aversion, and wealth
preservation. Tension may arise among stakeholders (founders, family member
owners, family members in business operations, investors, and employees).

16. 9
Family members not in business may find it safe to just be investors and not take
risks to protect wealth. Family members involved in the business together with
key business executives may want to increase the economic value of the
enterprise and may want to take calculated risks. These tensions and the
discussions that come with it may come and go depending on the performance of
the enterprise over time.
3. The business as a source of employment and power versus the need to have a
meritocracy in order to be competitive. For families who see the enterprise as a
source of employment, they may prioritize the needs of family over the
expediency of the business enterprise. In time some families may see the logic of
employment based on competence and qualifications owing to bad experiences
with family members running the business to the ground.
4. The comfort of consensus and collective needs versus individual freedom, agility,
and the delegation of power (which requires a great deal of trust and common
purpose).These tension is driven by the decision-making process of families.
Although consensus maybe a cherished tradition, the growing number of family
members may drive the need for a speedy approach to decision-making. This
tension is heightened by other factors like the different roles stakeholders
assume in the three-circle model of families in business.
Five Attributes of Enduring Family Businesses
According to McKinsey & Company, there are five (5) attributes of enduring family
businesses:17
A strong sense of purpose
Large family enterprises surviving many generations permeate their ethos of
ownership with a strong sense of purpose. Through time, these enterprises
develop both oral and written agreements addressing issues such as election
and composition of their company boards, consensus decision-making,
appointments of CEOs, and strategy. In the long-term they develop and share an
approach to management based on meritocracy.
Mostly privately held
Even if family enterprises have independent subsidiaries or have diversified
institutional investors, the majority of the ownership are still with a holding
company controlled by the family members. Most of the financial policies on
ownership are still aimed at keeping ownership within the family.
Strong governance structures
Large and durable family enterprises tend to actively work in their company
boards where they can diligently monitor performance and draw on their intimate
17
(Caspar, Dias, & Esltrodt, 2010)

17. 10
knowledge of industry gained through experience and long history. The longer
the family works in the industry, the more they become assets to the
management team. The more enduring and successful family enterprises get
fresh and strategic perspectives from outside directors.
Strong capabilities for managing wealth
Enduring large family enterprises exercise a high level of professionalism backed
up by institutionalized processes and procedures, strong rigor in investment and
divestment, thoughtful management of talent, and a strong culture in risk
management. The most enduring have a single family office handling a wide
range of services in wealth management or finance.
Pursuance of social goals with equal passion and professionalism
The most successful family enterprises and those that carry globally recognized
brands ten to pursue social goals with the same passion and professionalism as
their business operations. Foundations setup by these families contributed a
large share of philanthropic giving across the globe. The knowledge and
experience of family members tend to be carried over to the management of
these foundations.
The 3-Circle Model of Family Businesses
A framework for understanding the family in business became more organized when
Renato Taugiri and John A. Davis published their article Bivalent Attributes of the
Family Firm in the Family Business Review in 1982 introducing the Three-Circle Model
in Family Business (Taguiri & Davis, 1996). Eventually this model got referred to by
different names such as The System’s Theory Model of Family Business or the Three-
Circle System.
Since this model was introduced in 1982, it has become a central organizing framework
of discerning the dynamics of family business systems.
What is the Three-Circle Model telling us?
The model represents the three overlapping and interdependent systems in a typical
family enterprise, namely: family, business, and ownership. As shown in the diagram
below:

18. 11
The premise of this model is this: For a family enterprise or family business to effectively
function throughout its existence, each of the system (family, ownership and business)
must support and must understand each other.
The stakeholders in each of the system must understand their respective roles in the
system and the scope of their decision. All this decision-making, interaction, and
decision-making roles is what you refer to as family governance.
Stakeholders and Their Context in the Three-Circle Model
Clearly, the model shows intersecting areas. Stakeholders can find themselves in the
context of seven (7) zones within those intersecting areas. The interdependence of the
stakeholders in the system are more understood once we look into the context of each
stakeholder within any of those seven zones.
Zone 1 - Family Owner and Employees
Stakeholders in this zone includes those who are family members, company
shareholders, and are also employees or are directly involved in day-to-day
operations. Founders of the enterprise almost always are in this space. Anyone
in this space would know the family and business very intimately. This person will
most likely know the individual family members’ strengths and weaknesses at the
same time know the company’s history, culture, and operation.
Zone 2 - Family Employees

19. 12
This is where family members who are also employees but do not own any
shares in the company or do not have any form of ownership in the company
belong.
Zone 3 - Non-Family Owner Employees
Stakeholders inside Zone 3 are largely non-family owners and are involved in the
enterprise as employees or executives owing to the equity they have put in.
Zone 4 - Family Owners
This zone is where the family members who have shareholdings in the enterprise
belong. Stakeholders related by blood or marriage in this zone have
shareholdings or ownership but are not involved in the operation of the
enterprise.
Zone 5 - Family Members
Family members who do not own shares or do not have ownership of the
enterprise and are not involved in the operation of the enterprise are found in this
zone.
Zone 6 - Non-Family Employees
Non-family employees or professionals in the business enterprise belong in this
zone.
Zone 7 - Non-Family, Non-Employee Owners
Investors or owners who are not family members or are not related by blood or
marriage belong in this zone.

20. 13
How is Balance Achieved within the Three-Circle Model
The balance lies in the alignment of the business, ownership and family systems.
According to Premier Family Business Consulting this is possible if the intervention
process allows the achievement of the following outcomes:
 Validation of the family’s commitment to learn about building family unity.
 The organized gathering of data and information necessary to plan,
organize, and implement activities to achieve family unity and wealth
perpetuation outcomes are acquired, organized, and provided to lead and
collaborating consultants.
 The individual family members are well-disposed to the aims, goals, and
spirit of the family culture and unity building activity.
 Process, materials, team composition, and the desired outcomes for a
particular family are validated.
 The family’s shared history, values and culture are re-discovered.
 The guiding principles and timeless values that made the family
successful are articulated and institutionalize.
 Ensure the preservation of the family wealth (keep wealth within the
family).
 Individual family members are protected against personal financial and
business risks.
 The next generation of leaders are prepared to succeed.
 Organizational strengths and constraints are identified and change
initiatives are formulated.
 Strategic goals are defined and initiatives are prioritized.
 A competency framework for the family enterprise is designed and specific
competencies defined based on strategic goals and initiatives.
 Job content and compensation of family and non-family in the business
are levelled off to industry or near-industry standard.
 Mechanisms for behavior-based interviewing and hiring decisions are in
place and rolled out in the family enterprise.
 A system for performance appraisal for the family enterprise is rolled out
or implemented.
 A program for developing leadership and management competence of
family and non-family members of the business is in place.
 Measurable outcomes are defined at the activity and the service level of
the family enterprise.
A family member who wants to participate in the leadership or management of the
family enterprise can use the Three-Circle Model to see the perspective and concerns
of the other stakeholders found within the different zones of the model. It helps in
looking at the context of the respective stakeholders.

21. 14
In the perspective of a family business consultant or a program manager for the
development of family enterprises looking into a family in business, it gives them a
context in which they can design an intervention or a service that can best help the
family and their business.

22. 15
Maximizing and Developing Family
Enterprises
The only way to maximize and develop family enterprise is to recognize, to articulate,
and to find solutions to the challenges that families in business face.
Challenges of Developing Family Businesses
Aside from the challenges that individual family members and stakeholders face within
the three-circle model, both the family and the family enterprise already contends with a
host of many issues preventing development programs from aiding stakeholders in
addressing challenges within the three-circle model.
Lack of Organized Data on Family Enterprises
There is currently no organized effort to gather data about family businesses; hence,
there is no baseline data which we can use for comparing the performance and growth
of family businesses.18 This reality is not only true in the Philippines but in many parts of
the world such as large portions of Asia, Africa, and the Middle East.19 These lack of
baseline data about family business makes it difficult to gauge the impact of family
businesses in their economies and to formulate development strategies for the
sustainability of family businesses.
Families Don’t Trust the Data Gathering Process
Family business owners themselves are not too keen on disclosing information about
their family or their business. There is still a clear lack of trust in the process of data
gathering.20 This lack of trust may result in less data about family businesses even if
there is a formal program for gathering statistical data about family enterprises.
Challenges of MSMEs are Challenges of Family Enterprises
Since 80% of MSMEs are family businesses, it also follows that family enterprises are
affected by the same challenges as MSMEs such as lack of financing, human resource,
management competence, product development, access to information, etc.21 They
suffer the same issues in terms of lack of resources (material, talent, financing,
technology, etc.) to support the following common business activities: leadership,
planning, resource management, operations, improvement/innovation, documentation,
communication, and performance evaluation.
18
(Santiago)
19
(Economic Impact of Family Businesses - A Compilation of Facts, 2016)
20
(Santiago)
21
(Aldaba, 2012)

23. 16
Families in Business Need to Learn Strategies in Ownership
The concept of a corporation and a holding company are still alien to most Filipino
families with evolving businesses. Complex ownership structures are not the usual path
that growing family enterprises resort to so they continue operating as sole
proprietorships or a small corporation with inappropriate business models.
Family Founders and Family Members in Business Need to Learn Complex
Financial Management Systems
Families need to protect their wealth and the assets of the business. They can only
grasp the mechanisms towards this end by understanding complex financial systems.
Most enterprises are still getting most of their know-how from their bookkeepers and are
not yet keen on investing on professional financial managers or advisors. Their financial
systems ends up not catching up with the demands of the business or the context of
their current markets. They need to learn how to manage their risks.
Governance Structures in Family Businesses are Still Dependent on their
Founders
Decision-making in family business rely too much on the founders even when they have
grown to a point where markets are changing and competitive forces are driving
operational costs. Families need to establish a governance structure for both family and
the business. Developing their competence and confidence in these areas is critical.
Lack of Curricula Specializing on Family Business
Our higher education curricula currently do not have programs specifically for family
business education. There are currently two (2) prominent schools offering subjects on
family business in the Philippines, namely:
1. Family Business Development Center (FBDC)
Ateneo de Manila University
John Gokongwei School of Management
2. Family Business Studies Center (FBSC)
De La Salle University
These two (2) schools however are not among the 25 Best Business Schools for Family
Businesses in the world because it is not really offering a complete curriculum but a
collection of selected subjects on family business.22
Strategy for Maximizing and Developing Family Enterprises
In the face of all of the above challenges, what can we do for family enterprises? Here
are some of the suggestions and proposals from various stakeholders and sectors:
22
(Bain, 2015)

24. 17
1. Recognize family businesses as a sector in itself that needs attention in
the development agenda.
2. Establish a baseline data about family businesses accommodating the
statistical data gathering for this purpose in the annual activities of the
Philippine Statistics Authority (PSA).
3. Channel existing programs to develop MSMEs towards supporting family
businesses.
4. Encourage the development of training and educational programs for
family business founders, their family members, and non-family
stakeholders.
5. Encourage and create mechanisms to fund academic institutions and non-
government organizations to undertake research on family business.
6. Create mechanisms for local government units (LGU) to register family
businesses and encourage these family businesses to take advantage of
development programs offered to MSMEs.
7. Encourage business support organizations (BSOs) or chambers of
commerce to create a separate committee for family businesses.
8. Integrate family businesses when undertaking planning for the
development of the investment promotion ecosystem.
9. Support legislation at the national and local government levels that
recognizes the family business as an important sector and institutionalize
the development program by integrating it in the national priority
programs.

25. 18
References
Aldaba, R. M. (2012, February). Small and Medium Enterprises' (SMEs) Access to Finance: Philippines.
Retrieved from Philippine Institute for Development Studies:
https://dirp4.pids.gov.ph/ris/dps/pidsdps1205.pdf
Bain, D. (2015, September 3). The 25 best business schools for family businesses - and their star professors.
Retrieved February 1, 2018, from Family Capital: http://www.famcap.com/articles/2015/9/3/the-
25-best-business-schools-for-family-businesses-and-their-star-professors
Björnberg, Å., Elstrodt, H. P., & Pandit, V. (2014, December). The family-business factor in emerging
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27. 20
Virgilio Y. Paralisan: A Profile
Virgilio Paralisan has spent more than 15 years of his professional life in
Marketing and Customer Service in the information and communications
technology sector. More than three years of his marketing profession is in
advertising and public relations and more than ten years in brand
management. He managed events and products for multinational
corporations like Suzuki Motors, IBM, Siemens Nixdorf, Intel, Hewlett-
Packard, Microsoft, Intel, 3Com, etc. His several blogs are reflective of
his active involvement in development programs and projects that benefit
business enterprises and not-for-profit organizations. He also utilized and
employed his experience in the private sector in helping Not-For-Profit
organizations through micro-enterprise development and use of the
social entrepreneurship approach in achieving sustainability.
He takes pride in his involvement in development work and in many
occasions has volunteered in programs developing industries or
localities. In many of his engagements, he took responsibilities for the
induction of people, creation and development of teams, design and
deployment of leadership programs, facilitating strategic planning, and
rally support for many advocacy. He is currently working with local
government units in improving their investment promotion and enterprise
development programs.
The articles he has written and published online range from themes on
development work, customer service, business development, and
leadership. He has written articles, concept papers, case studies and
white papers to support customer service or develop training materials.
These papers cover a wide variety of subjects and themes. Most of these
papers were developed from notes he kept after each project and from
post-project reports he prepared. Case studies and articles are usually
developed using materials and experience from actual projects or
engagements. The documentation of projects and the papers he has
written collectively provided him a natural resource for developing
competence programs and workshop materials. A considerable amount
of his time during summer is spent providing free assistance and training
to beneficiaries of programs supporting the national development
agenda. He hopes to be just doing development work and writing.

28. 21
Should you wish to invite Virgilio Paralisan to
talk about developing family businesses or any
topic within his area of competence or to
simply help you in your development
programs, you may send him a message by:
Email:
virgilioparalisan@gmail.com
Message him via LinkedIn:
https://ph.linkedin.com/in/virgilioparalisan