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Only 2% of family businesses in the country have a succession plan
Posted On 05 Jun 2018
Ecuadornews:
In Ecuador, 47.9% of family businesses are managed by the founding generation, but only 2% have a succession strategy, according to studies conducted by the German-Ecuadorian Chamber of Commerce, together with the Courage Center of Global Family Firms of the Munich Business School.
The figures show that 39% of family businesses are in the second generation; 11.5% in the third; and only 1.6% of the family business managed to reach the fourth generation.
When considering that 90.5% of the business fabric in the country is family-like, according to research conducted by the University Espíritu Santo (UEES) and presented at the end of November 2017, there is a concern about the preparation it exists to be able to face an adequate succession.
For this reason, on Tuesday June 5 will be held at the University of the Americas (UDLA) the Fourth International Summit of Family Businesses that will address issues such as succession, digital transformation and financial strategies to face the accelerated evolution of the business processes.
The event, which will be replicated at the Hotel Oro Verde in Guayaquil on June 7, has the participation of international professors experts in the field of family businesses.
“Family businesses in Ecuador, as in most countries, are extremely important for generating jobs and for economic growth, because they are the engine of the economy,” said Johannes Ritz, an expert with the German-Ecuadorian Chamber of Commerce. In this type of economy. The official also pointed out that family companies in Ecuador generate around 1.6 million jobs and their contribution to the national economy represents 51% of the Gross Domestic Product (GDP).
Regarding the levels of linkage to industry 4.0, 60% of family firms in the country accept that their levels of digitization and innovation are low, a figure that is of primary concern for international trade. (I)
Source: https://www.eltelegrafo.com.ec/noticias/economia/4/empresas-familiares-plan-sucesion-ecuador
