And he added: “Family businesses are not only the economic engine, but they are also the structure that contributes to social roots, cultural identity and local support.”
The organization, founded in 2010, has 25 headquarters distributed throughout the country that allow it to maintain direct contact with companies in their own territories. Together with the Latin American Institute of Family Business (ILAEF), they recently presented the winners of the 2024 Awards “Leaving a lasting mark over time”, which they have been delivering for 12 years.
The family businesses that were awarded
The recognition has different categories and is granted to those organizations that, through research, professionalization, innovation and social responsibility, make a valuable contribution to society.
In the category Legacy in the Family Businessthe jury awarded the prize to Eyelitmen’s underwear brand founded in 1963.
For its part, Oscar Peman y Asociados SA. won recognition in the category Innovation and New Entrepreneurial Generations in the Family Business.
In the category Centenary Family Business took the award Ctibor Ceramicscurrently run by the third and fourth generations of the family.
He Andreu Groupa leading company from Cuyo in the logistics sector of Mendoza, was recognized in the category Career and Corporate Governance in the Family Business.
He Bolzán Business Groupa company from Entre Ríos dedicated to the agricultural business, was awarded in the category New entrepreneurial generations in the Family Business.
He Efia Groupwhich offers field maintenance services, was recognized in the category of Women’s Career and Leadership in the Family Business.
Bercomat familya leading company in the construction sector, obtained the distinction in the category Professionalization and Corporate Governance of the Family Business.
Finally, in the category of Sustainability and Corporate Social Responsibility in the Family Business, the balanced food company was recognized Grow.
The only winner outside of Argentina was the Paraguayan company Navemar SAwhich has been in the business for more than 60 years as a maritime and stevedoring agency, fleet operators and managers. It was highlighted in the category Professionalization and Generational Relief in the Family Business.
The situation of family businesses today
According to an IADEF survey, family businesses They have a strong vocation that the company continues in the following generations (95.3%). However, many times there are no tools to make this happen; Less than 70% have a strategic and operational plan and more than half of the companies surveyed (54%) do not use basic operational management tools, such as organizational charts.
“Family businesses carry a high level of integrity and values, and introduce a high degree of social responsibility, which contributes to creating an environment conducive to the reconciliation of family and work life. Furthermore, these companies usually guarantee the transmission of specialized knowledge and skills, and in some cases play an important role in social cohesion,” highlighted Natalia Christensen, in a recent presentation, during the presentation of an agreement of technical and educational assistance with the Argentine Confederation of Medium Enterprises (CAME).
However, this relevance is not duly reciprocated at the institutional level in the country. “There is not enough data and research in Argentina to be able to understand their specific needs and structures, nor is there a legal agreement or legislation that establishes a simple and concrete definition of them,” he posed.
As explained by the president of IADEF, three systems converge in family businesses, different from each other. One is the “family system,” which seeks to protect and care for, particularly the weakest or neediest, regardless of their ability or contribution. Then there is the “company system”, which recognizes and rewards the contribution of each person and whose purpose is the economic and financial sustainability of the organization. And finally, the “legal system”, which generally treats the family business like any other company, without taking into account its specificities.
Strengths and weaknesses of family management in companies
Christensen also referred to a topic that is often taboo: how the same family ties that can enhance the development of a company They can also lead to failure.
“As the literature states, Family businesses disappear, basically, due to family disagreements; in these companies Not only must the company be managed, but also the family. It must be planned how the new generations are going to enter, what capabilities, competencies and skills the future leader must have, what the plan for their training will be, what training shareholders who do not work in the company must have to vote consistently at the board of directors. owners, how we establish agreements that link the company and the family, if possible a protocol that helps us manage ourselves as a business family. In this sense, the data reflect a lack of information regarding these tools and, therefore, their use.”
At this point, he elaborated: “First-generation family businesses They are highly dependent on their founders not only for leadership and drive, but also for their contacts and technical knowledge, aspects that are lost if they are not managed correctly. Sometimes, in addition, the sudden death of a key family member in the management can convulse models of authority and distribution of property.”
“In these cases, the conflict between the heirs It often escalates to the point that they are unable to make the strategic decisions necessary to secure the future of the company. and equity shared between family shareholders. The lack of succession planning also threatens the financial well-being of the family,” he added.
Additionally, the expert referred to the way in which generational change impacts the family business system. “Usually family relationships need to be readjustedreview established influence patterns, become aware of the need to think about new structures that replace decision-making power structures (ownership and management) that have worked for other Company organizational contexts/models (technologies, markets, products, clientele). Added to this, it coincides that the family is different, because the succession coincides with changes in the life cycle of the people in the family, the family structure is different.”
In this regard, he clarified that “all these changes are those that create anxiety and awaken the need to resolve part of the uncertainty that surrounds the future of the family business (roles of people, work circumstances, economic positions, relationships, etc.). At the same time, the resolution of this uncertainty forces us to address many issues with a high emotional load that most people would prefer to avoid or deny.”
For all these reasons, it is necessary to have a systemic and integrated approach for family and business diagnosis. “This must be done with the external help of a “certified family business consultant”, who will guide this process using multidisciplinary tools. In parallel, It is advisable to prevent, reduce and channel conflicts -or potential conflicts- towards a friendly and extrajudicial management and solution; The external help of “mediators specialized in family businesses” contributes to this purpose,” he concluded.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
