Family Business Center
Family business in many countries constitutes about 30-40% of the most powerful companies, one third of jobs and from 8% to 58% of GDP. However, as the resent McKinsey study shows, less than 30% of family business usually reaches to the third generation of owners. Out of these 30% it is only less than a half that lives on to the fourth generation. In the fourth generatio, sustainable profits can only be brought to the owner at the level of 5% from what it all started.
Thus, to get long-term success, it is critical for family business to develop succession plan. In order for family business to remain successful down to the fourth generation, so that it could bring forward ultimate traditions, values and beauty, one should determine in advance who the successors are going to be and whether these are going to be the children of the founder. In the latter case, the next generation of owners and administrators should be properly prepared. The owners in Ukraine are often not ready for the issue of succession in business both emotionally and strategically. This could be individual unpreparedness and/or the unreadiness of successive person or a team. This is primarily because of the short history of Ukrainian business and no particular set traditions in it, including in this sphere.
Since the issue of successful transference of family business to the successors is extremely topical to Ukrainian companies that are only start approaching his stage of their development, the UCU Lviv Business school established Family business center.
Experience in the field:
- research ‘Why owners get back to management?”, ‘Strategies’ magazine, #1, January, 2011
- discussion at the discussion panel “How to get successors involved into developing strategies of the company?” at the Intro annual international conference, April, 2012
- article “Succession in Family Business” in Startegies’ magazine, #10, October, 2012
- international conference ''Managing a Family Business from Generation to Generation'', June, 2013