Family businesses are the ‘unsung heroes’ of global economy – PwC

Loading player...
GUEST - Esiri Agbeyi, PwC Africa Family Business Leader, says: “Family businesses must stay nimble to leverage evolving tax and trade frameworks. With sound guidance, family enterprises can adapt to policy shifts while sustaining growth and job creation. Coordination between African governments is also essential for harmonising tax policies and reducing red tape, so family businesses can optimise opportunities, comply with disparate rules, and focus on building prosperity.



Family governance



What is encouraging is that more than half (52%) of respondents say that families are starting to involve younger generations (between the ages of 26 and 35) in decisions about managing wealth. A similar proportion (56%) introduce them to advisors at the same age, however families wait longer before involving NextGen in important decisions or giving them voting rights: more than half (56%) of respondents said their families wait until their children are over 35 for this. That said, younger generations do not always have to wait so long, as four in 10 respondents say their families give children a say between 26 and 35.



Political stability



Political stability ranked as the fourth highest topic for discussion this year on a global basis — one position lower than 2022. The majority of wealthy families said they were concerned about political instability within countries, typified by political polarisation and rising nationalism. These families are taking political stability and geopolitics into account far more than before, not just in their investment decisions but also in how they structure their overall wealth. For many families, this means refraining from investing in places where they believe the geopolitical situation might lead to added complexity or, at worst, a loss of assets.



Philanthropy



Philanthropy retained its place as the fifth most discussed topic by family businesses. Many families view philanthropy as an important way to give back to society, creating a positive impact and providing family members with a purpose that binds them and brings their values to life. “Discussing how philanthropy aligns with family values can foster cohesion between an extended international family’s different branches and generations,” Agbeyi says. “Involving the NextGen at a young age can also instil pride, responsibility, identification with family values, and foster a long-term commitment to specific philanthropic activities.”



The 2023 survey affirms that global family businesses are once again facing a less predictable world, and one in which black swan events have a habit of materialising on a regular basis. It’s a more difficult world for preserving legacies and the family business’ wealth and purpose. That makes careful long-term planning and structuring more important than ever. More importantly, achieving this is not simply a once-off exercise but an ongoing journey involving the whole family.
22 Feb 3PM English South Africa Business News · Investing

Other recent episodes

In conversation with Ernest North, co-founder of Naked Insurance.

In this insightful episode, we sit down with the CEO of Naked Insurance, to delve into the ever-evolving landscape of insurance in South Africa. As a pioneer in digital insurance, Ernest North shares their unique perspective on the industry's challenges and opportunities in 2024. From navigating economic uncertainties to embracing…
19 Dec 12PM 24 min

Has Fourways Mall recovered?

GUEST - Paul Gerard, Managing Director of Flanagan & Gerard Property The festive season is traditionally a peak period for retailers. However, with changing consumer behaviors and economic challenges, the retail landscape has evolved. We are joined on the line by Paul Gerard, Managing Director of Flanagan & Gerard Property…
19 Dec 12PM 14 min

Concert Economics: Behind-the-scenes work at the Chris Brown concert.

GUEST – Justin van Wyk - Chief Executive Officer at Big Concerts From securing artists to managing logistics, putting on a successful concert is a complex undertaking. We'll be speaking with Justin van Wyk, CEO of Big Concerts, to learn about the behind-the-scenes work that goes into hosting big music…
18 Dec 12PM 14 min

SA bids to host the F1 – What will it take to host a successful F1 race?

GUEST – Khaya Sithole - Independent Analyst and F1 Supporter Hosting a Formula 1 Grand Prix is a major undertaking with significant economic and cultural implications. We speak with Independent Analyst and F1 Supporter, Khaya Sithole to discuss the challenges and opportunities of bringing F1 to Africa. We'll delve into…
18 Dec 12PM 12 min

Bitcoin reflection for 2024

Jan Vermeulen - Editor at Mybroadband In this episode, we delve into the rollercoaster ride of Bitcoin in 2024, with a specific focus on its impact on South Africa. We discuss the price fluctuations, regulatory landscape, and growing adoption of Bitcoin in South Africa. We'll explore the potential of Bitcoin…
18 Dec 12PM 14 min