Governance in Family Businesses | Moez Miaoui, IFC | Ethiopian Family Business Forum 2025

Описание: Breaking the "Three-Generation Curse" — Governance and the Future of Family Businesses

Why do only 3% of family businesses make it to the fourth generation? At the 3rd Ethiopian Family Business Forum (EFBF), Moez Miaoui (Acting ESG and Africa Family Office Initiative Lead at IFC) shared a powerful framework for moving beyond "intentional ambiguity" toward professional governance.

Watch this session to learn how to balance family emotional wealth with business profitability to ensure your legacy survives the test of time.

Key Discussion Points:
The Global Powerhouse: Family businesses account for 70% of global GDP and up to 80% of jobs worldwide. When managed correctly, they consistently outperform non-family businesses due to deep commitment and long-term vision.

The "Three-Generation" Threat: From Scotland to China, proverbs warn that "wealth does not survive three generations." Statistics back this up: only 1/3 make it to the 2nd generation, and a mere 3-5% reach the 4th.

Socioemotional Wealth (SEW): Family firms aren't just about money; they are driven by reputation, identity, and family unity. However, these strengths can become threats—leading to "intentional ambiguity," conflicting roles (are you a manager or a family member?), and succession crises.

The Balancing Act: For a family business to be truly healthy and profitable, it must separate and balance:

Family Governance: Using family meetings, councils, and formal "Family Constitutions."

Business Governance: Implementing independent boards of directors, strategic planning, and professional management.

The Takeaway: Success is not accidental. It requires active boards, regular family assemblies, and a deliberate shift from informal "trust-based" agreements to formal, structured governance.

#EFBF2025 #HST #FamilyBusiness #CorporateGovernance #SuccessionPlanning #ESG #IFC #EthiopianEconomy #LegacyBuilding