Cebu businessmen form support group

CEBU, Philippines - Businessmen in Cebu have formed a support group called the “Cebu Family Business Forum” to address the growing concerns of family-run businesses.

"It looks like we all need help here. Let’s form a loose organization, maybe we can meet for informal meetings, or coffee sessions for us to learn from each other," said Pages Holdings Inc., chairman Bunny Pages during the one-day conference dubbed "How to Sustain Your Family Business," conducted in partnership with Ateneo de Manila Center for Family Business.

Pages initiated the move during the conference attended by over 200 family-business owners and managers, as they see a threatening business future of family-managed businesses hounded by transitional concerns in passing the business to the next generation.

"Maybe Ateneo can assist us with our informal meetings. We should bring Cebu to the next level and be more competitive," Pages said adding that obviously a day of seminar on this important topic "won’t me a miracle."

According to Ricardo H. Mercado, professorial lecturer of John Gokongwei School of Management at the Ateneo de Manila University, there are top six concerns in the family businesses today in the Philippines, these are; harmony, succession/transition, financial issues, management issues (human resource), and marketing.

Family conflict is most the common downfall among family businesses, thus a lot of family-owned businesses fail to progress the founder has passed away.

"In family businesses, the family system cannot be ignored or neglected. This is made up of the family values, its culture, the individual family members' character, behavior, aspirations, and commitment," said Mercado.

The family-business expert said that it is important for the family to include a third party in the company's board, and everyone should respect company's "bylaws" or system, setting aside the interest of profit sharing, entitlement, among others.

According to Pages, there are a lot of things that family-owned and managed companies in Cebu can learn from each other. Also, getting themselves organized can collectively strengthen and get help from experts, not only benefit their respective businesses, but also collectively  making Cebu's local industry players competitive and tougher player in the global marketplace.

Global statistics posted that only three out of 100 family businesses are likely to sustain and thrive in the second to third generation.

Locally, Pages said there are concrete examples of then successful family businesses that failed to survive after the founder or the family's patriarch or matriarch have passed on.

So far, the most successful family business in Cebu that sustained and grew from generations is the Aboitiz Group, others however, have declared bankruptcy or suffering family conflicts and legal battles. (FREEMAN)