As part of Alzira Economics Week, Idea Alzira has organized a round table entitled "The competitiveness and durability of the Family Business: reflections and challenges", in collaboration with Grefusa, Broseta Abogados and the Chair of Family Business of the University of Valencia, attended by more than 170 participants.
The meeting was attended by Bernardo Gregori (Director of Risks, Compliance, CSR and Institutional Relations. President of the Family Council and member of the third generation of the business family) and Alejandro Ríos (Partner-Director of Broseta Abogados. Legal Advisor specializing in Family Business). The event has been presented and moderated by Alejandro Escribá (Professor of Business Organization at the University of Valencia, associate researcher at IVIE and director of the Chair of Family Business of the UV).
“For the family business to last, it is necessary to maintain entrepreneurship beyond the founder's push”
Alejandro Escribá
Alejandro Escribá has started by explaining that Valencian family businesses are improving their weight in the group of companies of high competitiveness, but that their position is very close to the national average.
Escribá has explained the factors associated with competitiveness. As for the human factor, he stressed that as business size increases, efficiency and productivity are gained, but that better wages are also paid and more invested in training and talent.
Escribá has also pointed out that in the Valencian economy the weight of trade predominates in value-added generation, at 44.6%, while the weight of the industry is reduced by 16.8%. However, in the Ribera Alta, trade weighs less on wealth generation, with 17.4% and the industry weighs much more, at 61.7%.
He explained that there are three fundamental aspects in which work must be done to improve competitiveness. First, the development of skills attracting talent: this means a good human resources policy, attractive remuneration and good working conditions that allow people to develop professionally. There is also a need to bet on technology and innovation. Second, size needs to be gained in order to meet these challenges, and third, governance systems and levels of management professionalization need to be improved.
On the other hand, it explained the keys to durability, which have mainly to do with two aspects. First, planning the succession of the Family Business. "Family Business endures when it is competitive and brings value to society over generations and therefore that purpose and entrepreneurial spirit must be moved to the next generations." Second, maintaining entrepreneurial orientation, going beyond the founding generation.
“More than 70% of current family business leaders admit not to have a succession plan”
Alejandro Escribá (Proyecto STEP)
As for Bernardo Gregori, he told the story of Grefusa from its origins to what it is today, emphasizing its solid values and commitment to people and society. It has highlighted the spirit of improvement, the ability to adapt, constant innovation, they bet on people and the reputation of the firm.
“The grandfather created the company, the children developed it and, contrary to what the saying goes, with the grandchildren Grefusa continues to grow”
Bernardo Gregori
Finally, Alejandro Ríos focused on the importance of not overlapping a family decision with the scope of the company, as it can have many damages for both circles. He also explained the importance of differentiating the roles of the three circles of influence that make up the family business: ownership, governance and management.
“For me external independent counselors must have 3 fundamental traits: to be very good in some aspect that is important to the company, to be brave to say things as they see them, and to have empathy and know how to provide the lubricant that allows to avoid friction in the family”
Alejandro Ríos
Alejandro Escribá concluded by pointing out the importance of improving the competitiveness of family businesses, since they are the backbone of the economy, represent the vast majority of commercial companies (more than 90% in the Valencian Community) and contribute three quarters of the wealth and 84% of employment.
The Chair of Family Business of the University of Valencia (CEFUV), promoted by the Valencian Association of Entrepreneurs (AVE), the School of Entrepreneurs (EDEM), the Valencian Institute for the Study of Family Business (IVEFA), the Institute of Family Business (IEF) and the University of Valencia (UV), and is currently sponsored by BANKIA and BROSETA ABOGADOS.
FOOTAGE - ROUND TABLE
