The lack of willingness to reach agreements, the blundering management of a business and fighting for more power can make family businesses falter. Such problems are faced Cáceres Geny Fernandez and his five brothers, owners of the building Cáceres Developers. In Mexico, 90% of small and medium enterprises (SMEs) are familiar and often have trouble not clear what business objectives and what the family, leading to it that companies lose customers and the worst cases leaving the market, said Ignacio Moreno Delgado, coordinator of Inter-American Development Bank Linkage Area La Salle University.
“We lost a lot of time by not agreeing on what should and should not do in the company and delayed decision making. In addition, there were different views between us and that generated more internal conflict, because the employees were confused about who to pay attention. We also lost customers and suppliers, “Fernandez recalled Geny Cáceres.
Family problems cause between 60% and 70% disappearance of SMEs in the country. It is a very high rate. In fact, 80% of companies in Mexico, when attempting to pass from one generation to another, do not. And the 20% that does, only 3% may pass the business to a new generation, “stressed Ignacio Moreno Delgado.
To avoid such conflicts, Universidad La Salle in Mexico, with support from the Inter-American Development Bank (IDB), created the Small Business Family Protocol, which supports employers to establish a corporate governance standards in line with the interests of family members and fosters the competitiveness and security to the company.
“What we look for the protocol is to give continuity to companies to make them more competitive and attractive to suppliers, other businesses and customers. We want to make them look like a serious company with a future secure,” said Eduardo Campos Cortes, senior consultant La Salle University.
Through the Family Protocol, the Salle University offers consulting objectively guiding family businesses, allow them to reach agreements, to know the times they should have and the general processes that help to lay the groundwork to make your business survive.
“Our family business needed to be more professional and that what we listen to the experts. We learned that everyone must take place for which is better trained and clarify the expectations of our company, “concluded the business Cáceres.