Running a business is never a walk in the park. This is even more true in the case of family businesses, where the daily challenges are intensified by family dynamics, relationships and emotions.
However, the traits that present added challenges to running a successful family business also become the strengths that keep such businesses afloat and thriving, especially during volatile times such as the recent period of unprecedented turbulence on a global level.
In fact, this period has resulted in the Collins Dictionary declaring ‘permacrises’ as the word of the year for 2022.
On an international level, various crises such as Brexit, the Russian invasion of Ukraine and the COVID-19 pandemic with the resulting lockdowns, have all intersected over a short period of time, resulting in a highly disrupted global supply chain, economic instability and inflation.
All this is happening in the context of the overarching climate crisis which requires a global concerted effort to overcome for the sake of our present and future generations.
Locally, the persistent significant shortages in skills across the board, ranging from both manual and digital technical skills to soft skills such as communication, critical thinking and teamwork required to succeed in the modern economy, can be considered a crisis in its own right, more so when one considers the unsustainable population growth being driven by the short-term solution the economy continues to resort to as a means of overcoming these shortages.
Furthermore, the ballooning population density and lack of a reliable, multi-modal transportation infrastructure has quickly created a crisis on our roads in terms of efficiency and safety.
The results of the Malta Chamber’s survey among family businesses will be presented on February 1- Marcel Mifsud
Despite most days being characterised by the undesired need to navigate these rough waters and uncertain times, family businesses recently surveyed by the Malta Chamber’s Family Business Committee recognised that the retention of their existing staff complement remains their highest-ranking priority.
This priority even outscored the need to improve the business’s financial performance, the need to introduce new products and services, and the involvement of the next generation in the business in preparation for succession.
This result clearly highlights how, against this backdrop of permacrises and volatility, but also opportunities presented by the need to pivot towards enhanced sustainability and digitalisation, family businesses know that without their primary asset, their people (who tend to become members of the ‘extended family’), they will likely struggle to overcome future challenges, leverage opportunities and remain competitive and relevant in the market over the next few years.
All this boils down to one simple conclusion. Unless family businesses shape up and adopt a professional mindset in their approach, they will find it very difficult to survive in the current business environment.
To this aim, the Family Business Committee within the Malta Chamber, together with the Family Business Office, has recently commissioned a survey among family businesses, which had a high response from over 100 different family businesses.
The aim of this survey was to identify which areas family businesses need to improve upon to become more professional in their approach and which are the priority areas for family businesses.
The findings from this survey will be presented and discussed during a seminar that will be organised by the Malta Chamber’s Family Business Committee in collaboration with Family Business Office on February 1.
Marcel Mifsud is a council member at The Malta Chamber and member of the Chamber’s Family Businesses Committee.