Capturing perspectives on succession planning and business continuity
of the next generation strongly feel that they have clarity on their future role
of family businesses will be passing on the business to the next generation in the next five years
of the next generation expect or hope to be managing the business in the future and only 17% expect to be mere owners
Entrepreneurship, ambition, resilience, dynamism, sustainability, legacy—these are some of the terms that are synonymous with a family business.
Family enterprises are key catalysts for growth and integral to most economies. Operating in markets with significant potential, these businesses offer stability to the economy, are optimistic about growth, drive job creation and have a long-term view on growth and profitability. The Family, Legacy and You publication captures perspectives from prestigious Asian family businesses on their approach to succession which includes grooming the next generation, aligning aspirations across generations and strategising ways of tackling issues around succession. With in-depth conversations with the current and next generation of leading businesses, we were able to uncover viewpoints on diversification, modernisation, bringing in professionalism and more.
These are exciting times for family businesses. Promising new markets beckon and existing markets offer plenty of prospects for sustained growth and diversification. This is attributed to a combination of favourable factors such as stabilisation of reforms, increase in consumption and demand, increase in investment and an overall positive outlook. By merging ambition with opportunities, family businesses are on an upward growth trajectory. Due to the make-up of family business, issues that can put the business at risk are mostly internal and need to be managed with a combination of tact and formal structures to ensure stability.
Professionalising the business is something the entire family needs to buy into and it cannot be just one person’s vision. It is a journey and we decide, which direction the family wants to head towards.
Sustaining and perpetuating a business through family values is essential to its survival. Family values is what defines and drives the business.
It is imperative for family business leaders to prepare the ground for the next generation while continuing to be at the helm.
The real challenge for an entrepreneur is to be able to select people with the right skill sets, who are aligned to you and meet your mental makeup.