The
CHAMBER
VOLUME I ISSUE 3 • 2018 JUL-SEP
The Official Newsletter of Ormoc City Chamber of Commerce and Industry, Inc.
“SUCCESSION PLANNING IN A FAMILY-OWNED BUSINESS”
If you are reading this, chances are you own, are employed, or in one way or another connected with a family business. If you have a son or daughter, chances are he or she will find work in a family owned business or he/she might start a business which he/she will pass down to other family members. Eighty percent of all businesses in the Philippines are family owned. It is safe to presume that these businesses are drivers of the country's economy, creating employment and making lives and communities better. We notice it everywhere, even in our city. Most businesses are family run, family owned. According to Harvard Business School, family firms account for two out of three businesses all over the world, creating as much as 70-90 percent of the global GDP as well as 50-80 percent of worldwide jobs. Global household names such as Toyota (Toyoda family), Samsung (Lee family) and Ford Motors (Ford family) are still family owned and in the case of these three, are run by heirs of the people who started the companies. Even though family businesses continue to enrich the global economy, realistically, it is difficult for them to prosper or at least survive beyond multiple generations. A proper succession plan is very important and is always one of the goals for a family business to prosper and grow through generations. Who will succeed and keep the business going? Should in-laws or non relatives be allowed to work or join the management? Should management personnel
SUCCESSION... è pg 19