Running Family Businesses and their Succession- SEDC Family Day Talk
Strathmore Enterprise Development Centre (SEDC) hosted family business owners to an enlightening talk on how to run successful businesses, and what it entails to provide smooth transition of ownerships from one person to another. The talk that attracted a large number of business owners in Kenya, was rich in practical examples drawn from real life cases and hands on solutions to various issues faced by businesses.
Taking the team through a well-rounded and informative session on the days topic, running family businesses, was the Dean School of Management and Commerce (SMC) Dr. David Wangombe. Dr. Wangombe tackled timely issues businesses are facing that include; how serious the business is; where will the business be in the next 50 years; who are running the business; how do the owners handle family members; issues of governance, legal and private affairs; what happens when the business owners die; how structured are the businesses, among other issues. Dr. Wangombe also addressed the role of spouses and the kind of contributions they make towards businesses.
Key take home points from the session: Family businesses should also be well structured, comply to tax paying and use structured processes to employ family members: It is important to incorporate children in the businesses from the get-go to encourage an easy transition when time comes: Education is very important for running successful businesses: Businesses should employ a governing system that includes having a board of governance with skilled members who are not necessarily family members: It is important to define management roles and to have a hierarchy in place, which can be used long after one is gone: The businesses owners should have a clear business plan that defines where the company is going and the its vision.
SEDCs primary objective is to help SME business owners develop their competencies to effectively manage productivity and growth. The centre seeks to address the needs of SMEs, providing solutions to the various challenges and real-life problems they encounter. They offer a 16week program that runs in two parts for 8weeks each; with intakes in January, May and September.
For more details on SEDC click here.