ADDIS ABABA – Family business enterprises have been contributing significantly to Ethiopia’s GDP by playing a vital role in job creation and community development, said HST Consulting.
The HST Consulting held Ethiopian Family Business Forum inaugural conference yesterday. The forum is formally registered.
Speaking at the occasion, HST Consulting Chairperson and CEO, Solomon Gizaw stated that family businesses are the backbones of Ethiopia’s economy symbolizing the spirit of entrepreneurship, resilience and innovation. The enterprises are not only contributing to country’s GDP, but also play a critical role in job creation and community development.
One of the critical challenges in family businesses is succession planning, which involves preparing for the transition of leadership and ownership from one generation to the next generation, he said.
The mission of forming Ethiopian Family Business Forum is to serve as a knowledge-sharing platform for current and prospective family business owners. It aimed to empower and support family businesses by fostering collaboration, sharing best practices and providing resources that enhance governance, sustainability and growth, he added.
It strived to address the unique challenges faced by family businesses and promote their long-term success across generations through education, networking and advocacy. “Some 85% of the family businesses surveyed reported that they don’t have family councils which are a significant deficiency in smooth running of family businesses since family councils are powerful tools for navigating the complexity of businesses.”
Moreover, they have strategy, evaluation, succession, planning, technology and operational expertise skill gaps. They have been hindering effective decision-making and strategic oversights, potentially impacting the viability of these businesses, Solomon underlined.
Despite these challenges, there is a potential for growth and sustainability if family businesses can address these issues by implementing best practices in governance, establishing formal succession plans and others, he noted.
BY TSEGAYE TILAHUN
THE ETHIOPIAN HERALD WEDNESDAY 18 SEPTEMBER 2024
