Family-owned businesses 'lack planning'
Abu Dhabi, May 23, 2008
Strategic and operational planning ranks as the biggest challenge facing Middle East family businesses, says a report.
The 2008 Middle East Family Business Survey, which is to be released at next week's Family Business Forum, shows that Middle East family businesses recognise the importance of strategy in achieving the long-term survival and growth of a family business.
Rami Nazer of Ernst & Young conducted the survey and will unveil the exclusive results on Monday at the forum in Abu Dhabi.
'It was clear that devising a clear strategy for the business was a challenge,' he said.
'The reason for this could be the perceived restriction that a clearly articulated strategy can impose on the entrepreneurial spirit of the founders.'
The survey was conducted throughout the Middle East since July last year and was submitted directly to participants.
The results were compiled over the past year at the Family Business Centre of Excellence in Jeddah.
A diverse array of participants covering different geographic markets were incorporated into the survey, where the largest percentage of participants were family businesses, who focused on their own country first, followed by the GCC and then the entire Middle East.
Ernst & Young found that most family businesses, which participated in the survey are currently in a transitional phase, with most of them being run by the second generation, or both the first and second generations.-TradeArabia News Service