On Monday, March 1st, 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) and the Institute of Family Business (IEF), and sponsored by BANKIA and BROSETA ABOGADOS has held a new virtual Breakfast under the title of "Never stop undertaking: Corporate Entrepreneurship and Family Business Continuity"

The event has begun with a brief introduction by Alejandro Escribá, professor at the University of Valencia and director of the Chair of Family Business (CEFUV), in which he highlighted two key aspects for the durability of family businesses: the management of succession processes, and the maintenance over time of a continuous entrepreneurial orientation, beyond the impetus of the founding generation.

 On this entrepreneurial approach over different generations, speakers Coral Erum (CEO of Asia and America and CEO of Erum Group) and Guillermo Lamfsus (CEO of Ice Cream Factory Comaker, ICFC) have conveyed their experience in a colloquium moderated by Professor Escribá. Both have conveyed to attendees how entrepreneurial guidance is carved in their companies and business families, explaining actions and good practices related to property, future generations of the family, and with the governance and management teams of family businesses.

“The ability to excite through the project, to being involved during your childhood, generosity and communication are key factors in maintaining entrepreneurship between generations”

Coral Erum

Erum Group is a company whose origin dates back to the 20s of the last century in Alcoy and whose main activity is the injection of thermoplastics. In addition, it operates in sectors as varied as textiles, automotive, cosmetics, consulting in waste processing and management, packaging, or household utensils. It is currently in the 4th generation, although management is involved in the 2nd, 3rd and 4th generation in different areas of responsibility. Coral Erum has stated during the colloquium that: "The best way to approach a generational transition is to do so with empathy to put ourselves in the shoes of our predecessors and understand and value their trajectory; sacrifice; vision and purpose. After this important exercise, it is time to incorporate the changes with maximum consideration, in an evolutionary and natural way, consensual, listening and achieving meeting points. With all this, we will achieve a solid foundation to start working on and ensure the permanence and evolution of the company over time, in the hands of the new generation."

Maintaining its entrepreneurial spirit throughout the different generations of the Erum family has allowed the company to grow to a large size, through an ambitious model that combines diversification with sustainability. During the colloquium, Coral Erum pointed out the importance of the role of members outside the family in their organization in this process: "providing a culture of questioning, which allows to nurture the company with greater vision and diversity, obtained a higher percentage of success and competitiveness in the market".

In the case of ICFC, it was born in 2003 through a Management Buy Out operation of the ice cream factory of the former Avidesa, when it already belonged to the multinational Nestlé. Since then, father and sons have developed an intense work of growth and innovation, making ICFC one of the main players in the sector, present in 20 countries and with commercial relations with many of the main distribution chains and with prestigious brands in the field of food.

“Our challenge is to be able to take the factory of our parents and grandparents, and create the factory of our children and grandchildren. With the responsibility of getting to future generations the work that past generations began, thus looking to the future with all the experience of the past” 

Guillermo Lamfsus 

ICFC currently develops four lines of business and an intense activity of innovation, although Guillermo says that "Innovation is not only for products; you must see everything that surrounds the company with an innovative spirit: innovation in the ways of working, of relating, of producing, even in the shareholding structure of the company." In fact, ICFC has opted for a new model of industrial relationship with one of the leading brands in the food sector worldwide, the Italian group Ferrero. "Innovating is not easy and is very directly related to the risk that the company and all its components can or are willing to take. Having a vision from start to finish of the value process makes family businesses more flexible and innovative. Possibly this is one of the most important factors for success."

During the colloquium, the speakers addressed the key factors in maintaining entrepreneurship generation after generation. In the field of the company, they have highlighted some aspects, such as the importance of letting new generations do on their own and involving non-family managers in the project as their own, or equip with differentiated governing bodies focused on their specific responsibilities). In the family sphere, they have explained the importance to instill from childhood the desire to get involved, through a lot of communication and generosity. In both cases, the structuring of the company's governance and management bodies allows business families to spend time thinking long-term and making improvements and advances in business models.

In addition, giving confidence to the generations that join and supporting them when they are not right is essential so that the desire to innovate and bet on new models is not diluted.

In the conclusions of breakfast, the director of the Chair, Alejandro Escribá has emphasized that the family character of the companies is not at odds with innovation, and that it is necessary to nurture the entrepreneurial orientation of companies generation after generation. Companies that combine an innovative and proactive approach and are able to equip themselves with governance systems that allow to control the activity without limiting their possibilities, are the ones that manage to maintain a project that grows and is constantly renewed, beyond the founding generations. Professor Escribá has encouraged entrepreneurs in the Valencian Community to bravely face the challenges of the near future to relaunch the activity and build ambitious, innovative and scalable projects. The pandemic is a big challenge for everyone, but it is also a huge opportunity to transform the Valencian economy and make it much stronger and more competitive in the future.

FOOTAGE - BREAKFAST SUMMARY

THE CHAIR OF A FAMILY BUSINESS AT THE UNIVERSITY OF VALENCIA

It was created in 2006, 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. Its activities focus on teaching, outreach and research on idiosyncrasies and challenges in improving the competitiveness of family businesses.

Learn more at www.cefuv.org.