To linger: a challenge for family businesses 

EcuadorNews:

At the third International Family Business Summit, held yesterday in Guayaquil, attendees were challenged to make an innovation in their companies. The entrepreneurs received recommendations from Pramodita Sharma (international guru of family companies) on how to prevent that the generational transference affects the success of their businesses.

Sharma spoke about the importance of preparing the future successors of the family heritage once their talent is identified. “In the first generation, the founder is the head, everything. In the second generation, several people hold the company or take control …”

In Ecuador, according to Johannes Ritz, another expert, more than 90% of companies are run by families. However, he cited as a disadvantage the fact that these are often informal, unstructured, and lack strategies. “Time goes by, families grow and that becomes complicated …”

Ritz and Sharma agree that “family members should prepare for positions within the company …”