Family Business Prosperity In Egypt

According to international reports, 90% of companies in the Middle East are family companies that contribute 80% of national revenue and account for about 75% of private sector activity and use 70% of the energy of pamuo. However, family businesses in the Middle East and Egyptian companies In all countries of the world agree that sustainability and growth is limited in the life of the founder as the start of opportunities to continue and the rates to make at least the next generation of the family, where international data show that out of every 100 entrepreneurs, there are 30 entrepreneurs who continue their work after death, while seventy Both lose their actions. on the death of the founder, although companies can survive until the fourth and fifth generations, the proportion of not more than 3% of companies that survive after the death of the founder, making developed countries aware of the risk that unable to sustain family businesses in their economies, and began researching the reasons for not continuing family businesses and economic risks and its assistance To continue to ensure the continued economic growth of its many assistance, including tax reductions and participation in the cost of support programs for the continuation of family businesses etc. .

Difficulty in sustainability due to the nature of family businesses, especially the overlap between family, management and ownership, which is one of the distinguishing features of family businesses, which is one of the main factors in creating tension. in generation. This will affect the continuity of the family and business at the same time. In the inability to continue from the second generation of the family, but to eliminate family relationships by virtue, and pointed out that family companies that continue to continue from the third and fourth generations are the ones that have succeeded in preserving the family and the company interested in the Early stages of the family work constitution clear and detailed all relationships and policies and mechanisms to ensure stress reduction at all stages of continuation or exit and distribution of prizes, and pointed out that there is no model of a single labor constitution applicable to all companies, each company determines the constitution of its work according to the nature of the activity Family circumstances and abilities the next generation of the family and their willingness to run the activity with their own knowledge or with the help of outside assistants s a nasud. The accumulated experience of family companies shows that maintaining the company for the fourth and fifth generations is a joint responsibility of the founders and children. Next generation.

In addition, it was observed that the family firm did not witness differences in the first generation stage due to sole decision-making by the founder as the tension began to make decisions beginning with the second generation and the next generation of children and grandson, where the differences increase as the family grows and increases the needs of its members from the company represented in the requests for participation in management Higher employment, income and so on. Thus, the problems of family businesses diminish and their chances of survival as the family grows and we increase and produce.

recommendation

1- Tensions subside whenever the founder of the company or the board of directors of the family to develop the family employment charter early, given the importance of remembering that the decision to continue the company did not give birth at the present time. , but requires preparations and rehabilitation for a period of not less than 15 years before the next generations follow the decisions of the company, And that the policies for the rehabilitation of the transfer and address the causes of tension should be transparent and clear. And there is a family council looking for family problems and other administrations interested in running the company out of family worries and problems. Likewise, family businesses are also vulnerable to corruption, illegal practices, fraud and deception, especially without an accurate system of internal control from the owners.

2- To encourage the advancement of the laws and regulations governing the establishment and management of Egyptian companies in respect of construction and management of majority and family businesses.