The Family businesses have a fundamental role in the economy of our country. According to a study carried out by the Inter-American Development Bank (IDB) in 2008, these companies contribute more than 40% of the Gross Domestic Product (GDP) of Peru, so it is vital for the economic interests of a nation to generate strategies , that maintain them and produce the so-called generational continuities.
In the research “What is the impact of business families?” of Ernst & Young (EY), it is pointed out that in Peru only 30% of family businesses pass to the second generation and, of these, only 15% extend to a third generation, a figure that many companies seek to expand. In this sense, the COVID-19 pandemic has served as an impetus for companies to diversify their products and the markets to which they are directed.
It is worth mentioning that this November 15th the X Congress of Business Families and Wealth Management will be held, where they will discuss the new measures that have been adopted to facilitate the continuity of a family business. In this sense, Paul Romero, president of the Association of Family Businesses (AEF Peru) developed 5 important rules that ensure their preservation in business:
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- Strategic planning: It is the process through which the dream of the company is raised and, among all the members, it is shaped. It is part of the best practices for family businesses and the first step on the road to institutionalization.
- Professionalization: It is promoted through the areas of preparation and training of family directors as well as non-family directors. This process begins with the training of the successors, it is defined who will assume the direction of the company and also the specific functions of any member of the family or collaborator, especially for decision-making at different levels.
- Corporate governance: It is the formal determination of a structure, processes and policies to manage a company. It helps to divide the work, create areas or units, establish hierarchical levels and above all forms of coordination through manuals, regulations, policies, among others.
- family protocol: It is based on a previous analysis of the motivations and aspirations of the family members. It manages to define through a document the rules and procedures that regulate family-business relations.
- Succession process: This will avoid uncertainty among those who depend on the family business. It consists of three phases: personal development of the successor, involvement in the company and leadership succession. You must determine who will be the successors in the chain of command and prepare them to assume the responsibility of leading the organization in the face of future eventualities.
The X Congress of Business Families and Wealth Management will take place on November 15 from 8:00 am to 1:00 pm at the Hilton Lima Miraflores Hotel. The event will have the participation of renowned executives and experts in wealth management in our country and abroad. In order to be part of this event, you must register HERE.
