It has been an “interesting” nine months for the Malta Association of Family Enterprises as it took its first steps to formalise its structure and objectives, chairman Mario Duca told The Times Business.
The association will score a number of firsts next year
Officially launched last February by a founding team of mainly family business owners, the association named its first council which went on to draw up a statute for approval by members.
Under its primary objective to ensuring the needs of the entire family business community are met and understood, the council earlier this month presented a position paper and its own proposals for the Budget to the authorities.
“Meanwhile, the council has embarked on the enrolment of members,” Mr Duca added. “The existing members are coming from the smallest first-generation family businesses and some of the largest and more established family firms in their third and fourth generation.
“Internationally, we have had requests to partner EU-financed projects in relation to the establishment of family governance and family business education programmes. Some research will focus on the comparison between the statuses of countries’ family business scenarios. Behind the scenes, the association has been very active. Now we are planning more ‘on the ground’ programmes which will give our activities more exposure next year.” Next year’s activities will include seminars organised with other business bodies, the fourth Annual Family Business Conference, and the delivery of family business education and training programmes. Some of Malta’s largest family firms have pledged their support to the association’s calendar of events, which, Mr Duca pointed out, will include a number of firsts for Malta.
Admittedly, the association is still in its infancy and the priority this year has been to set the ball rolling by developing the necessary organisational structures so that it can begin to meet its objectives in earnest. As a next step, the association is to recruit a manager to co-ordinate the association council’s activities and initiatives.
Even in these early stages, the association has already secured a feather in its cap with the design – and success – of a fully-fledged Certificate in Family Business Governance. A fourth intake is currently following the programme.
“The courses are being attended by entire working families or people who belong to a family business and usually make up an intake in that way,” Mr Duca explained. “Other classes are formed by participants from a host of family enterprises. Modules focus on how families in business can organise themselves and develop the necessary governance structures for the family to be together in business – if it so wishes – with the clear objectives of continuing to safeguard the business legacy with future generations. Participants begin to better understand the differences between a family-owned business and other firms.”
The courses are delivered by FBS2M Family Business Solutions, the Msida-based firm of which Mr Duca is managing director, and its partner Family Business Solutions Ltd of Scotland.
Mr Duca explained that course content also deals with the various interests that the three family business systems – family, ownership and business – have on each other and why conflicts are an integral part of any family business. Next generation issues, legal aspects that affect family businesses, and the processes involved in succession planning are also an important part of the programme.
The association’s founding members are Pier Luca Demajo, Angelo Xuereb, Doris Sammut, and Jean-Philippe Chetcuti, who is the association secretary. The association estimates around 85 per cent of Maltese companies are family-owned or run. Malta’s wealth, therefore, is heavily reliant on these businesses’ wellbeing.