Presentation of the “Good Governance in SME Family Businesses” project at Windesheim University of Applied Sciences, Zwolle.
During the “Good Governance in SME Family Businesses” symposium, Dr. Ilse Matser of the Family Business Research Group presented the research results. The symposium also marked the launch of the “Stimulating Advisory Boards for SME Family Businesses” project. More information about this project can be found at www.windesheim.nl/familiebedrijven under the title “Getting Started with an Advisory Board.”
External consultants can strengthen family businesses through their networks, specific knowledge, and experience. They can also play a vital role in supporting strategic decision-making. How can companies best bring this external knowledge and expertise in-house? How do you arrange effective support in a way that aligns with the identity and culture of a family business? And how do you ensure this is a consistent part of the business?
Entrepreneurs want continuity and, where possible, growth. They face many challenges. The economic situation of the company, competition, innovation, and personnel matters are just a few examples. Family businesses also face specific issues, such as succession planning and potential conflicts between family interests and the business.
Good Governance instruments offer these entrepreneurs the opportunity to involve talented “outsiders” in the company, avoid internal conflicts, and arrange succession or acquisitions. They also make attracting external financiers easier. But how can family businesses best organize good governance? What mandate and tasks should you assign to an Advisory Board? What should you regulate in a Family Statute, and how flexible is it?
Advisory Board and Family Statute:
Together with 17 family businesses, we investigated the extent to which good governance instruments, such as an Advisory Board or a Family Statute, contribute positively to strategic decision-making. Depending on the company’s choice and objectives, an Advisory Board or another good governance instrument was established and implemented. This study drew on the experiences of several family businesses in Belgium.
The study offered recommendations, best
practices, and tools that family businesses can use to strengthen their governance structures. Family businesses, in particular, but other SMEs as well, can benefit from this study.
