2 Days
Source:
النهار
Family Firms: Legacy and Succession Challenges
Family businesses are among the key economic pillars worldwide, representing between 50% and 80% of all companies and making significant contributions to GDP and employment, generating about 70% to 90% of the global annual economic output. These companies face significant challenges in succession transitions between generations, with success rates of only 10% to 15% reaching the third generation. The difficulties are compounded by differing visions and family disputes. To enhance continuity, modern family businesses rely on corporate governance practices, such as a "Family Charter," which governs family-business relationships, defines decision-making mechanisms, and provides a framework to sustain the organization and reduce conflicts.
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