Managing Family Business in Changing Trends
The UAE local economy has a very strong presence of family owned businesses. In fact the recent surveys indicate that around 90% of the business enterprise is controlled by close knit family.
With conglomerates entering the domestic market and fresh challenges increasing, the change is the only thing that will help these companies survive. These challenges are taken up well by these entrepreneurs who have the business flowing in their veins. Some of the family businesses in UAE have already shown their potential by investing in other countries and some of them even have got the strength to go public.
Handing Over the Baton
With exponential growth potential in the region it becomes necessary to always plan to have deputies ready to take over the business so that family disputes do not arise. The second or the third generations are being groomed to take over the challenges. Along with the opportunity of managing the business for these new entrepreneurs they have the challenge to transform their business to a modern entity. The acceptance for the new comer may not be a warm one so they need to take time to understand the working of the business well before they bring about innovative changes into the business.
Hiring the Experts
In some family business it is seen that the new age entrepreneurs are engaging financial consultants and highly qualified managers who can run their traditional family business while they focus their attention on new business venture.
The new age business men understand the importance of changing times demands change. When Sunny Varkey of GEMS group took managing the family run education business he understood this challenge and now they are the World’s Biggest Private School Operator.
Changing of tradition
It is widely observed that the family business have a very strong tradition and while some of them may be the pillars of strength of the organization but some has to be left for the good. Hence changing the traditions to suit the modern day environment is very important.
If there is no struggle there is no progress and with generation of struggle the family business has the potential to reach great heights.