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By Merit Ibe
The P r i c e Wa t e r – HouseCooper (PwC) Nigeria, has revealed that lasting family businesses in Nigeria are crucial to Nigeria’s economic development, if the country is willing to realise its desired Gross Domestic Product growth potential of 4 per cent to 6 per cent annually post COVID-19.
A survey carried out by the firm also stated that family businesses are essential to the success of the global economy, responsible for half of the global GDP, employment and account for over 30 per cent of companies with sales of over $1 billion.
In the new survey report entitled: “The 10th Family Business Survey: From Trust to Impact,” conducted by Uyi Apata, Country and Regional Senior Partner; Taiwo Oyedele, Fiscal Policy Partner and Africa Tax Leader; and, Esiri Agbeyi, private and family business leader, indicated the adverse effects of the COVID- 19 pandemic on global family businesses, especially revealing some of the lapses and lags among family businesses in Nigeria.
It said at the heart of the matter was the need to build trust, improve on effective governance, ply the digital transformation route and embrace innovative financing for business expansion and diversification. In fact, the family business survey is run every two years globally among key decision makers in family businesses within a number of PwC’s key territories.
The survey takes the pulse and explores the trends in family businesses. It covers questions on the family business’ values and purpose, performance and challenges, as well as preparations for the future.
“For this year’s report, we surveyed 2,801 family business leaders across 87 territories including Nigeria, covering a wide range of sectors, from agriculture to technology.
“The goal of the survey is to get an understanding of what family businesses are thinking on the key issues of the day. “The theme of this year’s publication is ‘Why family businesses need to act now to protect their legacy tomorrow.’ The fundamental philosophy behind this year’s theme is that global disruptions like COVID-19 have shown the need to focus on factors that turn current businesses into legacies for generations to come.
“There is a big task for family businesses, especially in Nigeria to effectively manage emerging risks by adopting business resilience measures across all service lines – sales, production, human capital, technology and research,” the PwC Nigeria Senior Partners added in the report.
The report highlighted that the Nigerian family businesses have had a challenging year – but rewarding as well. In particular, they have had to face tremendous headwinds with the currency issues and stock market fluctuations in addition to the pandemic.
“Growth is slowly returning to the market. We have seen how they have stepped in with their generous support of the communities during the pandemic. “The families are thinking about how to protect their legacy and get the NextGen upskilled to be able to professionalise their organisations.
“The NextGen are also the ones to bring in a more evidence-based approach.”
