Cause of death: Family conflicts

The problems between relatives are the primary cause for the disappearance of family businesses.

Wednesday, June 8, 2011

In Central American countries a large percentage of the GDP is generated by family businesses. In many cases the main strength of these organizations, the staff loyalty to the service of a company which belongs to everyone, is countered by the difficulty in resolving conflicts between the owners. These conflicts often lead companies with great economic potential to fail.

This is the subject of the article in Latribuna.hn, which outlines the key aspects of the lecture on the subject by the director of the Institute for Family Business ADEN Business School, Santiago Dodero.

"The elements that lead firms to failure are lack of competitiveness to grow, not knowing how to address the succession of management positions, unresolved family conflicts which are transferred to the company, and lack of leadership qualities of the successors. "



More on this topic

Fewer Microenterprises in Costa Rica

January 2019

During 2017, there were 361,000 microenterprises operating from households in the country, 14% less than those reported in 2017.

The National Household Microenterprise Survey (Enameh) 2018 details that this type of companies generated 600,444 jobs in 2018, including the owner of the activity.

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