Sharing personal values with non-family staff a key challenge

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 familyowned 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 is one of those global phenomena that 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. Most family-owned businesses face very specific problems ranging from having to share one’s personal values with non-family staff to resolving conflict on a personal and professional level that will not intrude on the spousal or other family relationships once outside the workplace. There is no doubt though that there are many positives in starting a family business and working with family – if it is well managed. Be it the support structures carried over from the family entity to the business or the deep-seated trust between a father and a son, the growing number of family businesses is a clear indication that that family unit in business is here to stay.