Business leaders gather to hear 2010/11 Family Business Survey results
Muscat, Oman: As the saying goes, "you can choose your friends but you can't choose your family". To some entrepreneurs, it is their families that have meant the difference between success and failure in business. According to PwC, which recently revealed the results of its Family Business Survey 2010/11, the most successful family firms are those in which there is a good balance between professional management, responsible business ownership and a harmonious family dynamic.
At a briefing in Muscat this week, PwC revealed further key findings at the Oman launch of PwC's Annual Global Family Business Survey. The results of months of research, talking to more than 1,600 family business owners and managers in 35 countries, including Oman and the UAE, the Survey aimed to find out how family businesses are coping with the economic downturn, what problems they are facing, and how they are preparing for the future.
Mr. Kenneth Macfarlane, PwC Oman Country Senior Partner and Mr. Amin Nasser, PwC Middle East Family Business Leader co-hosted the briefing at a morning seminar at the Capital's Grand Hyatt Hotel.
Amin Nasser is a specialist in advising family businesses in the Middle East and has considerable expertise and understanding of their dynamics and management. He revealed both positive and negative results. "Generally the family businesses in the Middle East have been less vulnerable to the economic downturn since most of them, over time, built considerable reserves and also have been conservative in their business strategies," explains Nasser. "However the financial institutions in the Middle East have been demanding increased transparency and formalised ownership governance as well as management structures in respect of the family businesses. Consequently we are likely to see a decrease in "name lending" by the financial institutions."
"The most persistent problem and the biggest challenge for family businesses is the issue of succession." adds Nasser. Although more than a quarter of the family businesses in the PwC survey are expected to change hands during the next five years, almost half of these companies do not have a succession plan. Families in the Middle East have not yet fully adapted the modern global corporate culture. In particular there seems to be a reluctance to giving up boardroom control and comply with the strict requirements of transparency and corporate governance.
The importance of PwC's Annual Survey is of significant local relevance, given the fact that there are in excess of 60 family-owned businesses in Oman. Kenneth Macfarlane, commented, "The objective was to consider the findings of this global PwC survey and how they apply specifically to family businesses in Oman. From the feedback we have received so far, the audience found the results both useful and illuminating - and hopefully will help them to better manage, and thrive in their own unique family business in the long term."
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Notes to editors
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© Press Release 2011
