Micro, Small, and Medium Enterprises (MSMEs) dominate the economic growth in Indonesia. According to the Minister for Economic Affairs Coordination Airlangga Hartanto, MSMEs have a major contribution in absorbing labor and collecting investment, thus contributing 61.07% of Indonesia’s Gross Domestic Product (GDP) (source: Bisnis.com, May 2021). It is hoped that MSMEs can continue to maintain productivity and following with global demands in economic digitization for maintaining competitiveness in running their business.
The family business is the main pioneer of business growth in Indonesia. Various large and well-known companies in Indonesia started as family businesses, including Sampoerna, Indofood, Djarum, and Bakrie. Family businesses are required to maintain continuous business sustainability for passing down the business from generation to generation.
Family businesses are divided into 2 categories, namely:
- Family-Owned Enterprise: the role of the family is limited to ownership and supervision, not participating in the company’s professional management activities.
- Family Business Enterprise: the role of the family as owner and participating in business operations.
Both these two forms of family business need to know that professionalism and independence need to be applied in running a business. Every family member involved in the company’s job position needs to follow with its function within the company to not interfering with the ongoing business activities. This has caused various family businesses to fail to continue to be inherited.
ShineWing Solution is here to be a solution for you in forming a good family business. We are here to help and assist you in formulating the fundamental aspects of the company, including the vision, mission, values, culture, strategy, and other aspects until succession planning to keep business operations able to be passed on to the next generation. This involves the role of the family in carrying out good corporate governance functions in every business life cycle.