Workshop highlights role of family business

Emphasises importance of corporate governance for growth.

ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) in collaboration with the Center for International Private Enterprise (CIPE) on Thursday organised a workshop on ‘Governance Challenges in Family Owned Businesses’, which was attended by a large number of business organisations.

CIPE Country Director Moin Fuda highlighted the importance of corporate governance in family-owned businesses, which was essential to ensure sustainable growth and progress, according to a statement issued by the ICCI.



He said one-third of Fortune 500 companies were family-controlled and owned businesses, which played a vital role in the economic development in many countries as they contributed 50% to the GDP and provided 60% employment to the non-agriculture workforce.

He said many family-owned businesses in China, India, Europe and the west have developed into conglomerates by implementing the principles of corporate governance but 95% businesses in Pakistan could not survive beyond the third generation due to a lack of professional management.

Lack of professionalism, documentation and transparency, lack of vision and capital were highlighted as the major problems in family-owned businesses that impeded their growth. It was stressed that family-owned enterprises should try to implement corporate governance that will bring multiple benefits as it will help in achieving long-term growth, reducing risks associated with mismanagement besides lowering capital costs. 

Published in The Express Tribune, February 13^th,  2015.

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