Less than 30% of family businesses survive to the second generation, and just 15% clutch on through the 3rd generation. In this dynamic and ever changing world those are far better survival chances for humans than for small businesses which arent fared by a team of family members.
Family-owned firms have the capacity to be top performing companies in their respective industries while nurturing the common identity and care within a family. But at the same time they are at the risk of family hazards that can overspill and engulf them. In as much as a strong family relationship is an added advantage in running a family business, it can also lead to conflicts between family members and difficulty in managing the business.
Strathmore Business Schools inaugural Family Business Program brought together various participants all working within family businesses where they garnered knowledge on the effective governance of a family business. The program drew a focus on the African context of family businesses and was delivered by a cross-cultural pool of faculty comprising of Paul Ouma Program leader, Family Business Program, Prof. Juan Roure IESE Business School, Spain and Irene Kinuthia Strathmore Business School.
The programs focus was on family business strategy linked with corporate business policies, dynamic and associations which affect family, business and ownership, policies and structures, conflict management policy and most important the imperative succession plan.
The program culminated with an interactive and exclusive roundtable session with top Family Business leaders and practitioners in the region.
About Family Business Program
Familiness is a resource that can create uniqueness and a critical source of competitive advantage to a business. Almost all companies start out as family businesses, but only those that master the challenges intrinsic to this form of ownership endure growth, maintain collegiality and harmony as a family and achieve success in the business. In the process they transition successfully across generations and proceed to prosper and diversify into multi- locational and multi-industry businesses.
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