Workshop highlights role of family business
Emphasises importance of corporate governance for growth.
1/3rd of Fortune 500 companies are family-controlled and owned businesses. STOCK IMAGE
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 13th, 2015.
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 13th, 2015.