DOHA: Family businesses in the Middle East have performed well over the last year, with 83 percent reporting growth in sales in the past year, a high in comparison to the 65 percent recorded globally, according to a PwC survey.
Working towards their ambitious growth targets, 23 percent of the family businesses in the region said that they are aiming to grow aggressively and quickly over the next five years, says the ‘Family Business Survey’ conducted by PwC.
The results of the survey were revealed yesterday at a panel hosted by Dubai Women Business Council (DBWC) in collaboration with PwC.
Over the past two decades, the role of women in family firms has undergone a paradigm shift. Raised standards of education coupled with improved economic conditions and financial opportunities have resulted in women contributing significantly toward the growth and success of family businesses.
The DWBC and PwC joint event was focused on the survey findings highlighting the state of family businesses in the region and how women play a critical role in the growth of the same.
Family businesses are thriving regionally with sales growth particularly strong in retail, manufacturing and construction sectors.
A confident 69 percent anticipate a steady growth while 23 percent anticipate quick and aggressive growth. Only a low nine percent saw a reduction in sales over the past year, compared to the 19 percent recorded globally.
Recruitment of skilled staff, succession planning and family politics are some of the key challenges facing family businesses.
These are just some of the findings of the latest PwC survey of 65 family business executives across the Middle East and 2,000 globally.
Amin Nasser, Partner / Entrepreneurial and Private Clients Leader, PwC Middle East, said: “Our survey clearly shows that family businesses in the Middle East will continue growing significantly. Compared with the rest of the world, family businesses in the Middle East are less fazed by the general economic situation. This has created a strong framework for family businesses to continue targeting ambitious goals, bringing stability to a balanced economy.”
Commenting on the event, Raja Easa Al Gurg, President of Dubai Business Women Council added “There is no denying the fact that the role of women in Family Business has undergone a paradigm shift. Active participation by the female family members in the Family Business has been steadily increasing in the past two decades. With women proving to be excellent leaders with exceptional capabilities, governments and society both are actively looking at ways to promote women entrepreneurship”
One of the biggest challenges facing family-owned businesses is the recruitment of skilled staff.
More than half say attracting the right skills and talent will be a key challenge over the next five years, and 43 percent say they will struggle to retain key staff in the same time period. Another 48 percent found the main challenge to be price competition.
The results of PwC’s Family Business Survey prove that family firms in the Middle East play an important role in the economy. Family businesses believe they hold stronger values than other businesses and this has created a strong, ambitious drive, delivering solid profits. The Peninsula
