Family businesses ‘need to bridge generations’

June 10, 2013 Leave a comment

Family businesses ‘need to bridge generations’

Watchiranont Thongtep
The Nation
June 10, 2013 1:00 am

Family businesses appear to be a key mainstream of global business. But bridging the gaps between the founding and new generations is important for long-term stability, an expert suggests.

“More than 80 per cent of the companies in the country were started and operate as a family business. Once the company grows up, a smooth transition in family management is crucial for sustainability,” Akachai Apisakkul, dean at the School of Business at the University of the Thai Chamber of Commerce (UTCC), told The Nation recently.Though the sizes of family businesses vary from small to medium, national to regional, most of the founders and owners believe that their business will be the family’s legacy. They want to make sure that their successors can run the business in the way that they planned.
“Perhaps, there are some conflicts between both generations in terms of business perspective and working style. This is a problem that I’ve heard about for many years,” said Akachai, who is also a director of the Family Business and SME Study Centre at UTCC.
The centre, established in 2006, conducts in-depth research and offers executive training programmes and seminars in line with consulting services for local family-owned firms that wish to cope with such conflicts and misunderstandings.
Besides bridging the generational divide, managing the family image is also important.
If a member of a family starts to develop a bad reputation, not only is its business or even brand image affected but its revenue might also suffer. To minimise that risk, a family business should ensure that it can manage its family well. In the worst case, some companies opt to fade out the family’s influence to improve the corporate image. 
More than 600 family businesses have consulted with the centre. 
To inspire family businesses, UTCC has joined forces with Workpoint Entertainment, the country’s leading TV production house, and Kasikornbank to air a game show called “Family Businesses Open Up” on Channel 5 every Sunday evening.
Tom Nunan, Hollywood’s famous film producer, is an adviser to the show, which aims to reveal the secrets of successful family businesses as they work through different ideas between generations. This reflects the challenges in business administration along with business succession towards growth. 
UTCC will play a significant role in sharing knowledge on Thai family businesses from the rich resources at the centre. “This TV show is also a part of the celebration of UTCC’s 50th anniversary,” he said.
To mark the occasion, UTCC will organise a seminar on “Thailand’s Future: How to lead trade and investment in theAsean frontier… Lessons and Learnings from My Whole Life Experience” with Supachai Panitchpakdi, secretary-general of the UN Conference on Trade and Development. The event will be held on June 21 at the UTTC campu

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