Home' Forge : Vol 1 No 4 Contents FAST LANE // 7
High-performing family businesses have an
Survey reveals that maintaining an innovative ‘Prospector’ strategy over
generations is a challenge.
Family businesses with an entrepreneurial culture are likelier
to outperform, and an entrepreneurial culture is a key trait of
high-performance family companies, the 2015 Family Business
About 43 per cent of family businesses surveyed adopt a
‘Prospector ’ strategy and are willing to innovate and take risks to
develop new products and services. A similar proportion employs
‘Defender ’ strategies, and stick to what they know best.
Another eight per cent have a ‘Reactor ’ strategy, and adjust when
faced with strong threats. And six per cent of family businesses
employ an ‘Analyser ’ strategy, where they follow other market-
leading frms when new products or services are successful.
Firms that adopt the Prospector strategy were found to be
signifcantly more likely to outperform other family businesses, the
‘High-performing family businesses have developed an
entrepreneurial culture within the business. Such a culture
supports the pursuit of innovation to develop new products
and services, [the proactive pursuit of] opportunities, and the
willingness to take on new competitors.’ But maintaining an
entrepreneurial culture over generations of family involvement in
the business is a key challenge.
Nearly 80 per cent of businesses surveyed are optimistic about their
growth prospects, and 70 per cent said they would need to invest in
extra staf or assets to take advantage of growth opportunities.
Greater use of governance mechanisms, such as boards, was
another key fnding. About 52 per cent of respondents had a
formal board, up from 39 per cent in 2011, and more frms were
using shareholders’ agreements, family constitutions and other
The annual survey, which has been conducted since 2005,
provides important insights into the intentions of the country’s
family business sector. The Family Business Australia/KPMG
survey was based on the responses of around 200 CEOs of
ASEAN set to play an increasingly
important role on the global
GEM report recommends ways to boost
entrepreneurship and innovation across
South-East Asia has one of the world’s
highest rates of entrepreneurship, and is ripe
for greater innovation and start-up venture
creation, a new study has found.
Released in November, the Association
of Southeast Asian Nations (ASEAN)
Regional Entrepreneurship Report is the
frst study of its kind to measure new-
venture intentions across the region. It was
produced in conjunction with the Global
Entrepreneurship Monitor (GEM), an
important, longstanding survey that tracks
entrepreneurship activity worldwide.
About 66 per cent of people in South-East
Asia view entrepreneurship as a positive
career choice, compared with a global
average of 62 per cent, the report found.
Successful entrepreneurs had a slightly
higher status than the global average, and
media attention for successful ASEAN
entrepreneurs was much greater.
Societal attitudes towards entrepreneurship
were strongest in The Philippines, Indonesia
and Thailand, and lowest in Malaysia and
Singapore. Entrepreneurial intentions to start
a venture were higher than those reported in
Europe and North America.
Mike Herrington, Executive Director of
GEM, says: ‘ASEAN is well positioned to
play an increasingly important role on the
global economic stage. An Asian Economic
Community (AEC) is no longer an abstract,
but a reality that the regional governments
are urged to embrace’.
GEM measures entrepreneurship rates as a
percentage of the adult population between
the ages of 18 and 64 who are in the process
of starting – or who have started – a business.
The report found that the new-business rate
of 10 per cent (businesses aged three to 42
months) in South-East Asia was the second-
highest regional average globally – and
almost double the GEM 2014 average.
An established business (older than 42
months) rate of 14 per cent in ASEAN is the
highest regional average, and is signifcantly
above the GEM average of eight per cent. But
rates of nascent entrepreneurship (frms less
than three months old) were below the global
The report identifed several challenges for
ASEAN entrepreneurship. Innovation in the
region is moderate, and many products and
services are not new to the customers.
The GEM report recommends 10 ways to
boost entrepreneurship and innovation
across the region. These include building
the professional ability of governments to
better understand and serve entrepreneurs,
meaningful media communications,
investing in good information technology
infrastructure, and creating tailored
development programs for entrepreneurs.
Links Archive Vol 1 No 3 Vol 2 No 1 Navigation Previous Page Next Page