NAIROBI, Kenya, Oct 17 – The growth of family businesses in the country is set to sore greater heights, according to a new report by PricewaterhouseCoopers (PwC).
The new report dubbed ‘Up close and professional: The Family Factor’ says the growth of the family businesses is strong and prospects bright with 69 percent of family businesses in Kenya experiencing sales growth over the past 12 months.
The report indicates that 56 percent are looking to grow steadily over the next five years while 32 percent plan to grow their businesses quickly and aggressively.
Thirty five percent of the family businesses, the report says, will generate sales from exporting goods or services to foreign markets in five years time with the East African Market as the major beneficiary.
“They believe that companies like theirs benefit from agile decision-making and an entrepreneurial mind-set, particularly when they focus on strategies to support long-term sustainability, professional management, skills development and innovation,” the report indicates.
Fifty five percent have a succession plan in place for at least some senior roles, while 23 percent have put in place a succession plan that is robust and documented.
73 percent have at least one procedure or mechanism in place to deal with conflict.
According to the report, many of the business families must adapt faster, innovate sooner and become more professional in the way they run their operations if they are to remain successful.
“It is clear that there are new challenges, the economy is a colder and harder place for the family firm, competition is more intense, price pressure is growing and the speed of change continues to accelerate,” says Henrik Steinbrecher, Network Middle Market Leader.
Family businesses account for 70 to 90 percent of Gross Domestic Product globally.
Among the Kenyan successful family businesses include retail chains, Nakumatt Holdings, Tuskys Supermarkets, and Ukwala Supermarkets among others.