eBusiness Weekly
Hilda Muchamiri
A family business is classified and registered under private limited companies. It is usually run by family members with the founder being the visionary. Over the last few years, a handful of successful family businesses have been noted with the majority being buried with the founder.
Observers say few business founders impart their knowledge and skills to other family members to ensure continuity in the event of death.
The idea of passing things or ideas to others is also captured in the Bible.
When Elijah was being taken up by whirlwind, he passed the mantle to Elisha and the ministry continued, 2 Kings 2:11-14.
Rank Zimbabwe, the largest stationary company in Zimbabwe, is an example of a successful family business that didn’t die with the owner.
The business started with Dhirubhai Mararji Naik, who is now late. It was passed on to his son, who is also late.
Rank Zimbabwe is now being run by grandchildren Amish Naik, who is the operations director while Ketan Naik is the director.
Analysts say squabbles among some family members usually cause inherited businesses to fail.
On July 18 this year, The Herald reported that a family feud was threatening to shut a top private school in Gweru.
Parents were reportedly threatening to pull out their children if the feud persisted.
Reports of poor results and unpleasant learning conditions fuelled by intermittent fights over the control of school by close family members.
The case has reportedly spilled into the courts and the respondent is understood to be threatening to cause mayhem at the school, a move that will negatively affect the smooth running of the institution.
Greed on the part of some family members has been blamed for the poor performance of family-owned business.
There are reports of some family members who loot daily takings and spend in loose living with friends and loved ones.
Recently, The Herald ran a story headlined, “Mphoko family in Choppies looting spree”.
The story alleged that a shareholder in the retail business, Siqokoqela Mphoko is accused of abusing his power to “loot” cash generated from sales at different supermarkets and replacing it with transfers.
Mphoko is a director of Nanavac Investments Private Limited.
Nanavac is the local partner for the Botswana – registered Choppies Distribution Centre (Proprietary) Limited.
Such abuses, if not checked, tend to bring down family-owned businesses.
This calls on shareholders to be disciplined and wait for their salaries and/ or dividends.
At the same time, families need to strive to resolve amicably any disputes that arise. Lack of innovation has also hampered the success of family businesses.
Innovation allows companies to survive for long and move with the times, allowing growth in the process.
