Research carried out into family businesses in the <a href="https://www.thenationalnews.com/business/money/2023/03/01/uae-economy-minister-urges-family-businesses-to-invest-in-new-sectors/" target="_blank">GCC</a> by global consulting firm Deloitte earlier this year found that most anticipated notable growth in the years to come. This runs contrary to overall predictions in developed nations across the globe, where businesses are bracing themselves for a challenging period. We maintain a level of optimism in the GCC owing to our increasingly <a href="https://www.thenationalnews.com/business/comment/2023/02/22/why-nations-must-diversify-their-economies-to-avoid-stagnation/" target="_blank">diversified economies</a>, meticulous planning and strategic spending by governments, as well as rising oil prices. Despite unexpected shifts in global economic conditions, our governments’ efforts and citizens’ resilience have given our nations a series of strengths and opportunities to expand upon, and we must not take these for granted. Entrepreneurship is woven deep into the fabric of Arab heritage, and <a href="https://www.thenationalnews.com/business/money/2023/03/28/why-ai-is-a-game-changer-for-gcc-investors/" target="_blank">family businesses</a> in the GCC have been instrumental in driving business in our nations, from forming synergistic partnerships with global players to creating home-grown names that have supported national economies by enhancing trade and employment. What gives family businesses an edge over corporations is their ownership structure, which places a greater emphasis on the long term. According to <i>What you can learn from family business</i>, an article published by the <i>Harvard Business Review</i>, family owned businesses do significantly better during economic slumps than publicly owned companies of a similar size. They also boast better long-term performances even though they may seem to lag slightly behind their public counterparts during periods of economic growth. These findings are very interesting and offer a great deal of hope to GCC countries. Therefore, I call upon all family business owners across the region to take this opportunity to highlight their economic contributions and engage with other stakeholders to maximise their potential and help drive their nations towards increased stability and growth. There is definitely room for governments to collaborate with large-scale family businesses, and perhaps encourage them to form strategic partnerships with smaller companies in the local community, including young and aspiring entrepreneurs. Our region is home to myriad young, bright and innovative minds who could use mentorship and engagement to help realise their visions and spur growth within their sectors. Family-owned businesses are estimated to employ 80 per cent of the GCC workforce, according to research published by the Academy of Strategic Management in 2020. Given the fast-evolving hiring trends and a shift towards increased digitisation of business, as well as an increase in remote and hybrid roles, I believe that family businesses are well placed to empower and benefit from a richer and wider talent pool than we have seen before. By introducing more part-time, hybrid and remote options, these businesses can create employment opportunities that address the economic inclusion of people who were confronted with challenges regarding job accessibility in the past – for example, part-time students, women with caregiving responsibilities that require them to stay home as well as disabled people whose needs are best accommodated by them not having to travel to work. Diverse talent undoubtedly adds great value to any organisation, and family businesses in the region are positioned to create opportunities for a broader range of job seekers like never before. Furthermore, increased digitisation and streamlining of business processes can lead to more efficiency and boost revenue. With developed countries across the globe facing a series of economic setbacks, more and more foreign investors are looking towards the Gulf for better returns. We must strike while the iron is hot – family businesses in the region that have been key players in building the business landscape in their respective countries are uniquely positioned to form strategic partnerships with foreign investors who have a keen interest in the region but who would find great benefit in collaborating with seasoned business leaders who know the ropes. Our region has come a long way and this is no small feat – we must be conscious of our greatest strengths, namely our wise leadership, our citizens and the businesses that have contributed towards the building of our societies and continue to drive socio-economic change. Given current global economic trends, it is imperative that we hone in on our strengths and encourage collaboration and engagement geared towards growth and results for all involved. Local and family entrepreneurship has been a key driver of growth and has helped our region to diversify interests and maintain economic stability even amid unfavourable global conditions. There is still a long way to go and many untapped opportunities. However, if all parties keep their eyes on the prize and maintain a collaborative mindset, I am sure our region will be successful in paving the way to a more secure and prosperous future for the coming generations.
