Despite the above facts, one of the biggest reasons of weak industrial growth in Pakistan is Family businesses. Most of the businesses are run by families from generations. Let’s analyze the major reasons behind their failure or poor growth rates as compared to rest of the world:
- Lack of succession planning
- Decision power kept at Sponsors level
- No proper corporate structure
- One man show approach at department level
- No proper reporting framework in the name of confidentiality
- No training or capacity building of staff
- Poorly drafted business and operational plans
- Lack of trust by sponsors on their employees
- Power struggle among successors
- Low investment in information technology
- Desire to keep business among family
- Fear of dilution of power restrict them to go public
All above reasons are the main hinderances created by Sponsors themselves. We have numerous examples of businesses who are no more just because of this approach.
If you are facing the same issues in your business then it’s time to change. Let us help you in bringing this change. We are just a call away. You can reach us at +92 300 4506012 or email at cloudoutglobal@gmail.com