As pointed out by Christophe Bernard in his column on 18 October 2014, some 42% of the respondents to the Family Business Global Survey have, at some point in their business, received direct investment from high net worth individuals (HNWI) and other family business investment pools. The experience was commended by an overwhelming majority (92%) who saw it as positive, in particular when comparing that source of financing to others available to them.
Blue Ocean Leadership is an innovative take on leadership developed by INSEAD professors W. Chan Kim and Renée Mauborgane out of their Blue Ocean concept, which was shared with the public in 2005 in their book Blue Ocean Strategy and has proved a huge success. According to the two scholars Blue Ocean leaders are those managers who make a high impact – who actually manage to draw out the best in employees.
While many banks around the world are retrenching, it would appear that in India, at least, family businesses still see them as their chief source of funding. Indeed, nine out of 10 Indian respondents in this year’s Global Family Business Survey were upbeat about bank financing.
Relations between family businesses and HNWIs in South Africa are exceptionally strong, according to our 2014 Global Family Business Survey. In fact, four out of five family businesses canvassed reported having already obtained direct investment from HNWIs – and all of them were positive about the experience. “They were easily approachable and their guidance throughout the undertaking was outstanding,” said the CEO of a Stellenbosch-based investment company.
Our Global Family Business Survey indicates that some of the main obstacles to investment partnerships between high net worth individuals (HNWIs) and family businesses are the perceptions on both sides concerning control of the business. Suggested solutions include education of family business owners on investment options, networking, and use of external advisers. As preceding articles have sought to show, we believe there is the potential for the two groups to work together successfully: both seek to achieve long-term goals, have a shared appetite for measured and managed risk, and value a personal touch.
In this third bi-annual European Family Business Barometer, European Family Businesses (EFB) and KPMG once again seek to bring an insight into the confidence levels of family businesses, the challenges affecting their everyday operations and the solutions they seek to ensure their development and sustainable growth. This time the headline message is that while the outlook is positive the pressure on profitability and the war for talent are the key changes.
Japan’s family businesses place high importance on the retention of family ownership and preservation of the business and its traditions for the next generation. Of the family firms surveyed as part of our KPMG Global Family Business Survey, 80% had a family member CEO, three out of five were 100% family-owned, and the remaining companies were more than 50% family owned. A unique element of Japanese family businesses is their longevity – with two of the companies surveyed being run by fourteenth and seventeenth generations.
Great news for the family business sector is that high net-worth individuals (HNWIs) are generally very happy with their investments in family businesses, so the creation and renewal of such relationships moving into the future is looking bright. This is a key finding from our 2014 KPMG Global Family Business Survey.
High net worth individuals (HNWIs) see family businesses as a good match for them according to the results from our recent KPMG Family Business Global Survey. Nearly half say that they have invested in at least one family business, often in a personal capacity. Encouragingly, the vast majority say their experience of doing so was positive.
Leonard Forestier from Petit Forestier group talks about the passion for the business.
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