Report by Pricewater house Coopers (PwC), a leading financial advisory organisation, has indentified economic environment, corruption and regulation as the top challenges affecting the performances of family businesses in Nigeria. The study, however, says many of the businesses are weathering the storm owing to strong business values cultivated over the years,
The report titled PwC’s 2018 Family Business Survey was unveiled at an event attended by top business executives and regulators in Lagos on Thursday.
PwC, in the report, has urged family businesses to maximise the competitive advantage that comes from their strong values-led culture.
The survey is a global market study among key decision makers in family businesses within a number of PwC’s key territories with a view to understanding family business executives’ thoughts on key contemporary issues.
Themed ‘building a lasting competitive advantage through your values and purpose in a digital age’, this year’s edition says family business leaders reported robust performances last year, with growth hitting its highest level since 2007.
According to the well-researched document, growth among Nigerian family businesses in the year reviewed was lower than the global average. It shows that 53 per cent of the operators reported growth as against the 69 per cent global average.
However, 87 per cent of the respondents, according to the survey, expect to grow in the next two years, with 40 per cent saying that “growth will be quick and aggressive”.
A statement by the firm says: “The top three challenges cited by Nigerian family businesses as militating against the personal and business goals are economic environment (70 per cent), corruption (67 per cent) and regulation (57 per cent). Corruption, which PwC estimates could cost up to 37 per cent of Nigeria’s GDP by 2030 if unchecked, is associated with lower investment, higher prices as well as (causing) barriers of entry for businesses.