Governor urges parents to involve children in running family businesses
Parents have been urged to fully involve their children in the running of family businesses to tame the rising collapse of their firms once they exit the industry.
Nakuru Governor Lee Kinyanjui noted that the reluctance of parents to involve their children in businesses they own turn out to be catastrophic the moment they transfer management.
He said hundreds of family-owned firms have been dissolved due to wrangles and mismanagement.
The Governor said there is a need to have children incorporated in family-owned businesses to enhance its continuity for generations.
“The attrition of one generation will be a major hindrance to the growth of a business once you put in people who have no idea how to run a multi-billion-shilling firm,” said Kinyanjui.
Governor Kinyanjui noted that parents should encourage their children to pursue courses that are in line with family businesses in order to equip them with the necessary skills on how to run the firm.
According to him, for a business to satisfy the market demand, it must live for at least more than one generation.
“We have seen businesses folding up once proprietors retire or die because the weight you are placing on your children is too much and they end up giving in to business pressure,” he said.
On family model business structure, the county boss lauded the Royal Group of Companies which has been operational for four generations.
He noted that it was an indication that family businesses can thrive when children are involved and taught on the policies of the company.
Royal Group of Companies is a managed group with companies diversified in a wide range of business activities ranging from development, Industries, retail, distribution and fleet business.
