Family businesses play a fundamental role in the economic development of our countries; in effect, they have a great impact on the GDP of a country, in addition to being the greatest source of employment in the free world. Their weakness, however, is also amazing as few survive their first generation members.
Several country and continental studies show that only 30% of Family Businesses reach the second generation and out of these that achieve it, only 15% goes to the third generation; in other words, out of every 100 businesses of family nature, only 3 or 4 are able to move on and last to the third and fourth generation.
The object of this document is to create an awareness so that Family Businesses in Bogota understand the importance of continuance and become a factor of economic development in the community and in society in general, as the best future option to generate well-being among your own family. It is of paramount importance to create this awareness among the different sectors of the community (trade unions, academia, financial sector, government sector, etc.) and thereby lower the Family Business ‘mortality rates’ in our cities and countries.
This document is oriented toward firms of all sizes, as there is the wrong concept that equity planning and parallel planning (within the family and the business enterprise) should only be carried out with the big companies. In effect, the medium to small-size firms tend to ignore the high benefits coming from the consolidation of firms that could last throughout several generations within the same family.