Focus Economics has updated its 2017 list of top economics and finance blogs.
There are quite a few additions and some others who continue to be included in the list. In all humility, Mostly Economics continues to be in the list. Thanks to the several visitors and well-wishers. Hope the momentum continues this year as well…
One is still trying to figure the Budget hype and its impact.
But the broad trends in the two financial markets- equity and debt – are showing different signs (Mint edit):
Whether it is first or fifth generation, all boils down to governance:
Involving the next generation and preparing them to take charge is one of the big issues that crops up for family businesses. They also face many other challenges – transitioning to professional management, introducing governance among own family members, and so on. Building for perpetuity is a key challenge too. As Sonny Iqbal, Gurgaon-based co-leader of Egon Zehnder says, when they surveyed family businesses to find out their concerns, profit is often low down on the list. “Survival, sustainability, doing good, are often bigger concerns,” he says.
Eighty per cent of global corporations are family businesses. But according to the Family Business Institute, says Iqbal, only 30 per cent of these organisations last a second generation, 12 per cent remain viable till a third, and barely 3-4 per cent operate in the fourth generation or beyond. The reasons are multi-fold. Finding suitable successors, transitioning without losing vision and values, lack of governance can all derail companies. Not investing enough in innovation or digitalisation could be another.
But if you flip things around and ask why some family businesses are so successful, some common threads emerge. Says Iqbal, “ If the fundamentals of governance are solid, if the fundamentals of innovation are good and if the foundation has been laid in a thoughtful way targeting perpetuity, then usually there is longevity.”
Governance is key, both Riiter and Iqbal stress. And they are talking governance not just at the board level on company matters, but also at the family level. Explains Riiter, if by the fourth generation the family has some 600 shareholders, their roles, involvement, compensation and so on have to be spelt out clearly to everyone.
Hmm..
Nice to read about some banks still holding onto traditional ways of banking.
It was established in 1892 and continues to maintain old ties and relationships:
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Mostly Economics 