APortuguese family businesses that integrate multiple generations of the family and that are more committed to the well-being of their workers and suppliers tend to have a stronger and longer-lasting business. This is one of the conclusions of another study by the consultancy KPMG on family businesses worldwide and which includes more in-depth data on the Portuguese reality, as it was the year with the most national responses ever, with a total of 2683 respondents.
According to the analysis carried out, these are the companies that manage to pass on the name and values of the family and business from generation to generation and that manage to avoid the so-called “legacy paradox†€, that is, the possibility of a company having such a strong family legacy that, even with the younger generations, it runs “the risk of inaction or immobility†, explains Luís Magalhães, responsible for the tax area at KPMG and spokesperson for the consultant within the scope of this study.
In fact, 78% of the companies surveyed agree that legacy is a very important part of the business, but the most representative characteristics are the intangible ones, such as the name, values, and the relationship with workers and suppliers (46%). The material legacy – which includes assets such as money, land or properties – was only mentioned by 16% of respondents. In fact, in the global conclusions that bring together all the regions under analysis — Europe, America, Asia and the Pacific and the Middle East and Africa — it is said that “as it increases the number of generations in companies, the weight of material legacies decreases and more importance is given to intangible legacies†.
The 2683 Portuguese family businesses surveyed have an average age of 67 years. The global average age is 42 years
“We manage with long-term objectives, 10, 20 years and never for the quarter or for short-term awarded objectives,†says José Germano de Sousa, administrator of the Germano de Sousa group and president of the Association of Family Businesses. An opinion shared by Isabel Furtado, CEO of the TMG Automotive group and, like Germano de Sousa, one of the guests at the first of two conferences to present the KPMG study: “Family businesses have a perception continuity and management that is more balanced between the short and long term than those that live in some way more dependent on the mandates of their managers and the intentions of shareholders who seek immediate results.â€
The lack of feminine touch
Looking at the characteristics common to the family companies that responded, there is one that continues to stand out in the negative: in the almost 3 thousand companies surveyed, only 7% have women in executive president (CEO) positions. It is true that there is an improvement compared to 2022, when this percentage was 5%, but it is still synonymous with a “very gradual, mild evolution and with many barriers†, says Isabel Furtado. “It is not reasonable that progression in professional careers is so unequal, especially because women have already done so in their academic lives,†she adds.
In fact, according to global data from KPMG, there is already evidence of the capacity of women in management positions. For example, when they “indicate that the positive impact of legacy on sustainability is greater in family businesses led by women†. Or when they show that the company’s name loses weight, because the focus is more on workers, the environment or innovation.
Even so, globally, only 17% of the companies surveyed have female CEOs, less than the 18% recorded in 2022.
There are still few female CEOs. How to change?
It is necessary to understand the reason for this slow evolution, to feel the pulse of the evolution of the culture and mentality of societies, and of Portuguese society, in particular, to promote this change. Many companies fail to understand that the role of women in management is a great asset, because if we look at our cultural legacy, we conclude that women have always been managers and know how to be. Although in a totally different context, the central management role has always been entrusted to them – the management of the family, the family budget, decisions, finances – in other words, a set of dimensions fundamental to people and life in society as we know it. Some, even in more complex circumstances than many companies. The solution seems to me to be simple – recognize women as peers, respect our decisions and honor our capabilities. Isabel Furtado
What can we conclude from the data on longevity?
Considering the average age of the companies that responded (67 years), we found that the majority of them are family businesses that are already in their third generation and that have overcome the stigma of that same generation, precisely, due to the fact that they were able to successfully respond to the legacy paradox, taking advantage of the best of this “heritage†and continuing with ambition and openness to diversification and innovation. Luis Magalhães
How important is legacy on performance?
The family legacy is the transmission of assets. This intrinsic value, not directly measurable, is reflected in the creation of value in companies that, more particularly in those that have existed for more than a generation, are winning models. With more than 350 members, today we have many companies that are over 50 years old, some that are over a century old and even one that is 253 years old. José Germano de Sousa
