Thailand Family Business Survey 2019
family business in Thailand expect to grow over the next two years
have next generation family members working in the business
plan to pass on the baton to the next generation
Family businesses in Thailand are a key driver of the economy, accounting for more than 80% of GDP while also contributing to society and developing talent. One-third of the firms listed on the Stock Exchange of Thailand (SET) are family owned.
Looking beyond the balance sheet and net worth, family businesses contribute to the long-term sustainability of society. They embed strong family values, build trust, and give back to the community. Philanthropy is at the core of highly responsible family businesses around the world. They are a good model for the communities they serve, and they indirectly create a lasting impact through the values they bring to society as a whole.
Family businesses also create a vast number of jobs in Thailand. They constantly have to invest in human capital, while responding to emerging challenges and managing business disruption. The local, regional and international business landscapes are constantly changing, making it essential to stay one-step ahead.
The Thailand Business Survey, which is part of PwC’s Global Family Business Survey, attempts to understand how family businesses operate and their future prospects for success.
It clarifies how family firms set business goals and strategies, what challenges they face and how they respond to survive and thrive. The report mentions the values family businesses apply in their day-to-day operations. Most importantly, it looks at succession planning and how family businesses are preparing their next generation of leaders.
To get a clearer picture of Thai family businesses, the findings are compared with those in the PwC Family Business Survey 2018 – Asia Pacific report. Note that the Asia Pacific report is PwC’s internal report and has not been published. Therefore, the publication may not be found elsewhere.
The findings show that family businesses in Thailand dominate the market in terms of contributing to GDP, social impacts and job creation. There are signs that Thai family businesses are interested in being listed on the SET or placing shares with chosen institutions. This means they will operate under a more professional approach by establishing more rigorous processes, forming clear governance, and hiring talents from outside. While decision-making still remains in the hands of the family leaders.
Family businesses that last for several generations have to have excellent vison and great management. And, the family values they have been implementing in the business are important as these values tie everybody together through routine business practice, creating a long-term commitment to becoming consensual guidelines for future generations.
The other main factor to drive a lasting family business is a robust and formalised succession planning process. This ensures the ownership, continuation, and growth of the business. And preparing their successors to take over the entire responsibility and authority is also imperative. It will provide a smooth transition, as the better the successors understand the business, the longer they will sustain and grow the family business.
Finally, adapting to change in a business environment matters. Family businesses will continue to face challenges and opportunities. The management team needs to be agile, innovate and move fast enough to turn a crisis into a business opportunity. They need to grab an opportunity before others and maximise it for the comprehensive benefits of the firm.
Family businesses that pass the baton from generation to generation don’t do this by accident. Those who prioritise the major factors mentioned above are likely to endure the longevity and prosperity of their family business.
Clients and Markets Leader, PwC Thailand
Tel: +66 (0) 2844 1000 ext. 4673
Clients and Markets Leader
Entrepreneurial and Private Businesses Leader
Tax and Legal Partner, PwC Thailand
Tel: +66 (0) 2844 1000 ext. 4239