2nd PNG Family Business Survey
From survival mode to action mode
Why family businesses need to act now to ensure a better tomorrow for them and PNG
The resilience of PNG family businesses gained through many decades of working in the “Land of the Unexpected” through previous peaks and troughs left them well placed to adapt quickly to the 2020 crisis, and although they are cautious about the next few years, they are well-placed to succeed.
But action is needed to help them meet the aspirations of the next generation and other stakeholders in relation to sustainability, digital and governance. If they can accomplish these, their power to fuel the post–2020 recovery grows even more important because of their financial impact.
Our final conclusions focus on the three key areas in which immediate actions will help secure a lasting formula for success for the generations to come: sustainability, digital and family governance.
If family businesses can accomplish these actions, their power to fuel the post–2020 recovery grows even more important because of their financial impact. To retain their licence to operate, they will need to revisit their purpose and use the trust they have gained to create measurable non-financial impact.
Explore the survey themes
Economic resilience is high.
76% of surveyed businesses say that they needed no additional capital in 2020 and only 32% cut their dividends during 2020. Additionally, 76% are expecting to grow in 2022.
There’s a desire to lead on sustainability, but action has been slow.
53% say there is an opportunity for them to lead the way on sustainable business practices and 38% say they are unlikely to lead but will play their part when required.
Progress on digital transformation is slow.
38% say their digital capabilities are strong. In the 2018 Family Business Survey 52% were worried about innovation and technology, and 48% said they would invest in it.
The barriers of resistance to change appear to have been removed and the journey has started to professionalise the family businesses in PNG.
44% now have a documented vision and purpose statement; 41% have succession plans; and only 9% say there is resistance to change.
