Family owned firms have a disproportionate sense of power in Latin America. This is because such firms make up about three- fifths of the GDP of these countries and about three- fourths of the list of companies whose turnover exceeds a billion dollars. A new report has been published titled The Institutionalization of Family Firms in Latin America. This study has been developed by the Global Private Equity Initiative (GPEI), which is the business consulting arm of the INSEAD along with the Wendel International Centre for Family Enterprise (WICFE). Due to this institutionalization mentioned, these family owned firms escaped some of the trappings typically associated with third- generation companies. They outdid their rivals in growth capabilities by twenty- eight percent. The organizational design has been mapped highly intricately. There is abundant access to capital. Among the family assets, there are also intangible pieces. The family ownership and succession has been planned better here in the Latin America region than in Asia- Pacific or the MENA.

Source:https://knowledge.insead.edu/economics-finance/latin-american-family-firms-and-the-path-to-longevity-11331

Uploaded Date:13 May 2019