'A clear business strategy is crucial'

Experts agree – one can never underestimate the importance of the family-owned business and the role it plays in the South African economy. Coming in different shapes and sizes, some 80% of businesses in the country are family-owned while they also comprise some 60% of the companies listed on the JSE. From the Rembrandt group to Toyota and Pepkor, Liberty Life and Pick 'n Pay to the local café at the corner of the street, working with family can be challenging. According to Entrepreneur magazine, it can either bring out the best or the worst in its management. According to the Corporate Shop, an organisation that offers support to family businesses, it is important for the family-owned enterprise – like any other – to have a clear business strategy going forward. Often a family-owned business will maintain the same way of doing business over too long a period of time with the result that it becomes stagnant or does not develop with technology. Keeping up to date with the market is not the only challenge. While an entity is small it is often acceptable to implement a “family management style” but as a business grows it is important to ensure that professional systems are in place that will see it move forward without losing its character.