FAISALABAD: Family-owned businesses must adopt corporatisation for sustained growth in addition to accelerating the economic growth, said Dr Ishrat Hussain, former governor State Bank of Pakistan (SBP).

Addressing a function organized by Allied Bank Limited (ABL), Dr Ishrat said initially industrial and business concerns were cropped up as family businesses but this module has now become obsolete which could not fulfil the emerging needs of fast-changing global environment.

Narrating the disadvantages of family-owned businesses, Faisalabad Chamber of Commerce and Industry (FCCI) president Atif Munir Sheikh said family-owned businesses are most vulnerable as petty family issues could disturb the entire structure of the company.

He said in Pakistan most of the businesses were started as family owned entities and many of them have now raised their industrial entries. He said the first generation continued to stick with this module but the second educated generation of the business tycoons preferred corporatization as it provides them an opportunity to expand their businesses across the world. He expressed satisfaction that the government was also encouraging corporatization and hence family-owned businesses must avail this opportunity.

He said the SME sector could generate funds from the local market to undertake its future expansion projects. He said that FCCI was fully convinced that family-owned businesses should adopt corporatization and, in this connection, we are contemplating to set up a business school in Faisalabad on the pattern of LUMS which could produce young dynamic business entrepreneurs and skilled manpower who could lend full support the corporate sector. He particularly mentioned the growth of ABL and said that this group had also started its journey as a family business but now as a corporation which was making tremendous progress.

He said corporatization has been gaining momentum and within the next few years a large number of family-owned businesses would become dynamic corporations to further expand their businesses on modern scientific lines. He said that this paradigm shift would gear up the economic growth of Faisalabad. Speakers from the divergent sectors also addressed and appreciated the bold initiative of ABL to arrange a brainstorming session on this challenging subject.

Copyright Business Recorder, 2022