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Published on September 28, 2007

At a seminar entitled "Family Business on Stage" sponsored by Kasikornbank, panellists urged local enterprises to meet world-class standards, in order to flourish in this age of globalisation.

Kasikornbank executive vice president Boontuck Wangcharoen said several big businesses today were based on families. Although the businesses generate billions of baht a year, they operate under a family structure. However, differences between the older- and younger -generation owners create problems for future growth.

To smooth out the friction, those businesses must learn to develop with modern technology and adapt good traditional ways of management to their operations.

A 1995 study by Forbes magazine found 31 out of 800 international companies had a family business structure and that their CEOs came from within the family, which implies that family businesses are among those that are driving the world's economy ahead, he added.

University of the Thai Chamber of Commerce president Chiradet Ousawat, said organisations both public and private had paid less attention to family businesses, even though this kind of enterprise had played a significant role in expanding the economy.

He urged the public and private sectors to study family business structures more and use their practices and experiences to benefit small and medium-sized enterprises, which make up more than 80 per cent of all businesses here.

The university's study reported that 80-98 per cent of today's businesses were family-run, generating more than 75 per cent of income for countries worldwide.

Family businesses employ 85 per cent of the global workforce.

Chaivat Taepaisitphongse, chairman of the Betagro Agro Group - one of the most successful agribusinesses in Thailand and a family business - said that following the teachings of ancestors was the key to success.

"To become a leading business, we adapt the traditional way of working with modern operations. The traditional family way is to be loyal, active, patient and sincere with customers and staff, while the company also has a modern business structure for administration to ensure quick response to customer demand," he said.

At Betagro, the next generation will continue to develop the business to a higher level of success, averaging growth of 7-10 per cent a year.

The group is aiming at 15-per-cent growth in sales this year to Bt33 billion, he added.

Petchanet Pratruangkrai

The Nation