THE FILPINO FAMILY BUSINESS AND THE ATENEO FAMILY BUSINESS DEVELOPMENT CENTER: PARTNERS FOR A SUSTAINABLE FUTURE Maria Teresa L. Galura Ricardo H. Mercado

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Nov 20, 2013 (3 years and 11 months ago)

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THE FILPINO FAMILY BUSINESS AND

THE ATENEO F
A
M
ILY BUSINESS DEVELOPMENT CENTER
:

PARTNERS FOR A SUSTAINABLE FUTURE



Maria Teresa L. Galura

Ricardo H. Mercado



Like other countries, the majority

of businesses in the Philippines are
family
-
owned,
family
-
managed or

family
-
controlled



defined as businesses where majority, at least fifty
-
one
percent (51%), of the shareholdings is owned by a family. Although there are no
formal
research studies done

on survival rates

here in the Philippines
, we believe that
the survival
rate of Filipino family businesses hews closely to statistics cited by scholars

in other
countries



30
-
50
% of family businesses make it

to the second generation, 10
-
20
% make it to
the third and 3
-
5% make it to the fourth gen
eration.


A clear majority

of the ten richest families
in the Philippines as quoted from

Forbes List are
first or second generation family business owners


Henry Sy of SM Holdings,
Lucio Tan of
Philippine Airlines,
Tony Tancaktiong of
Jollibee Foods
Corpo
r
atio
n, John Gokongwei of
JG Summit

(
after whom the Ateneo’s School of Management was named
). Only two from
this list claim to be officially pa
st the third generation
, both are from the
Zobel Family

of

the
Ayala
Group
.


The Ateneo Family Business Deve
lopment Center (FBDC)
believe
s
that by helping family
businesses achieve success and long
-
term sustainability, we contribute to the building and
strengthening of the Philippine economy.

The
FBDC
, which is housed in the
John
Gokongwei School of Management
(JG
SOM
)
, works with family businesses through its
main activities of research, curriculum development, seminars, workshops and special
assistance projects.
One interesting service that the FBDC provides is its intervention in
helping business families in
t
he crafting of

their

Family Con
stitution
.


The FBDC’s work proceeds from
a

framework consisting of
the Seven P
illars of
Family
B
usiness

Management



Family Team Building, Family

Governance
, Professionalizing the

Family B
usiness
,
Strategi
c Planning for the Family Business,
Crafting of the

Family
Constitution,
Retirement and
Succession

Planning
,
Estate Planning &
Ownership
Management.


The latest offering of the Center was through a program designed and headed by
Mrs.
Galura

called the

“Family Enterprise Management
Program
: A Managed Process

. It was

done
for the
Philippine
-
Australian Huma
n Resource Development Facility

(PAHRDF)

and

funded by
the
Australian Agency for International Development (AusAID)
. This Program
benefitted various f
amily business members of the
Davao City

Chamber of Commerce &
Industry
, Inc. (DCCCII
) which culminated in a boot camp

in the Southern Philippines

for
17

business
families.

We are currently in the process of documenting the results of the
Program.

Initial results have shown promising changes and inspiring initiatives by the
different families.

The
Ateneo’s
John Gokongwei School of Management is strongly behind the Family
Business Development Center in its mandate of helping Asean

business families address the
twin challenges of growing the business and managing their family dynamics.