In the country, 90.5% of companies are from families

Ecuadornews:

The “Universidad de especialidades Espíritu Santo” presented the first part of a study that reflects how the business fabric is constituted.

The family businesses that constitute between 80% and 90% of the companies in the world are an important engine of growth of the gross domestic product and the labor force.

In the country, according to the first report on study on Family Business in Ecuador, presented at the “Universidad de especialidades Espíritu Santo” (UEES), 90.5% of the business fabric is family-owned.

Marcelo Andrade, director of the Unit of Studies and Development of Family Businesses of the educational institution, also informed that 7.9% of the companies are of non-family dispersed property and 1.7% of unknown property.

The research was based on the 50,000 companies (among large, medium, small and micro enterprises) established in the Superintendence of Companies.

The figures reveal that on the Coast, 90.7% are family businesses; while in the Sierra this percentage is equivalent to 89.8%; in the Amazon, 97%; and in Galápagos, 95.7%

Juan Carlos Corona, director of the Family Business Institute of Spain, and who supported the Ecuadorian study, explained that this type of business is positive for the economy. “Family businesses have a longer life expectancy than others; therefore, they give the economy much more stability. ”

Corona used Spain as an example. In that country, non-family companies live in an order of four to five years. However, the relatives have an average of 32 years.

About the relationship between these types of companies and the authorities, the expert said that they should focus their actions in favor of family businesses. One of these could be a tax refund.

“Apparently this is losing income. In the short term yes, in the long no, because if the family companies take advantage of these policies to grow, in the end the public sector itself will be winning, “said Corona.

Mark Hollihan, manager of Corporate Governance and Social Responsibility of Banco del Pacífico, said that this type of studies serves to give sustainability to the business sector of the country.

In a second and third phase of the work of the UEES, they will analyze the economic and social contribution of family businesses in the country. (I)

Source: http://www.eltelegrafo.com.ec/noticias/economia/1/en-el-pais-el-90-5-de-empresas-son-familiares