Why good governance makes sense for family businesses

Why good governance makes sense for family businesses

From conglomerates with global operations to locally run shops, family businesses have long been central to driving economic growth across the globe. In the UAE, the role and importance of family-owned businesses is even more crucial as they comprise 90 per cent of the private sector, many of them entwined into the very history of this nation. Growing from early industries such as pearl diving, these businesses later diversified their interests to solidify their positions as leaders – across a broad range of sectors. The crucial role of family businesses cannot be overstated, and their sustainable survival is paramount for ongoing economic health. However, there are some key challenges common to family businesses that must be understood and meaningfully addressed to achieve this. With transparency and robust governance structures increasingly important in today’s world, many family businesses are finding they need to elevate their processes, practices and policies in line with the ever-developing business landscape. At the heart of family firms’ success is a sound governance structure that evolves with the changing dynamics of the business. Practicing good governance enables businesses to establish robust policies, laying the foundation to increase transparency across operations and to foster innovation, ultimately leading to