Can business and family be combined? Some say they can, but many say no. The pros and cons of this issue are growing everywhere. In Indonesia, even in the world. However, regardless of the pros and cons, the role of the family business in the economy of a country, even the world, is very significant. This is the data.
Excerpt a study by McKinsey (2014), Dr. Hadi Cahyadi, MBA, MCL, said that 80% of the Gross Domestic Product (GDP) worldwide comes from family businesses. Hadi is the Managing Partner of PT Helios Capital, a management consulting firm based in Jakarta. He explained the data in the Large Family Business & Beyond webinar held a few weeks ago by the Faculty of Business, President University (PresUniv), collaborating with Maestro Consulting, Ciputra University, Pelita Harapan University, and Tarumanagara University.
The webinar is part of the road to the International Conference on Family Business and Entrepreneurship (ICFBE) 2021. ICFBE is an international conference event held annually by the Faculty of Business, PresUniv. For 2021, the conference will be held on October 26, 2021, with the theme On The Path to Recovery: Leadership, Resilience, and Creativity.
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Still excerpt McKinsey, Hadi also revealed that of all companies globally, 60% of them are still controlled by families. These companies play an essential role in the economy, as they average US$1 billion in revenue (or around Rp. 14.5 trillion at current exchange rates).
Dr. Anton Wachidin Widjaja, Head of the Master of Technology Management Study Program, PresUniv, said the data is no less attractive. Anton is the moderator of the webinar. Even in the United States (US), almost 90% of businesses there are controlled by families. "Then, about 85% of startup businesses or startups get their capital from their families," said Anton. Over the past few years, this startup has become quite phenomenal in the world. Many businesses that started from scratch some call it started from the garage of the house, are now developing into giant companies. They are called Unicorn (the name for the turnover of US$ 1 billion per year) and even Decacorn (turnover is already above US$ 10 billion).
That is in terms of numbers. On the other side, said Hadi, family businesses in Indonesia and worldwide play an essential role in overcoming various social problems. For example, the family business creates many jobs. This helps to overcome the problems of unemployment and poverty. Reducing unemployment and poverty will also reduce crime rates.
So, that is how big the role of family business in Indonesia and in the world. Then, what are the problems family business faced? (JB Susetiyo, PR team. Photo: multipolar-group.com and president.ac.id)
