Can family companies survive the winds of change? A cry for legislative help
Did you know that most of the successful businesses in the Gulf are in fact family owned? Did you also know that only a small minority actually survive into the second generation? Three factors are mainly to blame.
First, the natural stresses of family dynamics, sibling rivalry and a failure to educate and inspire the new generation to become stewards of the family legacy is a factor. Second, the dilution of ownership naturally occurring as part of the estate devolution rules often results in the business being run by a bickering committee of family heirs and not all businesses survive being governed in this way.
Without a properly pre-framed family rule book, no business can prosper in the face of unresolved family conflicts, deferred decision making and general bad management. This pushes the family into going their separate ways by breaking up or dividing the business thus undermining a once successful economic force. Family businesses are often better off staying together, their market strength and staying power stems from this unity. This divide may ultimately end the business and deprive the coming generations of the family legacy…
If you are registered and logged in to the site, click on the link below to read the rest of the Al Tamimi & Company briefing. If not, please register or sign in with your details below.
Click on the link above to download briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Al Tamimi & Company
Briefings from Al Tamimi & Company
Corruption has a detrimental effect on any economy. It creates unfair advantages, anti-competitive practices and a generally unfavorable business environment.
The Libya Herald reported on 16 April 2013 that ‘the IMF confirmed its forecasts on Libya of 20.2 per cent GDP growth in real terms for 2013’.