“Only 20% of family enterprises survive a second generation.” And the chances of survival progressively decrease from one generation to the next, falling to 4% for the third generation, 0.8% for the fourth generation, 0.16% for the fifth generation, and 0.032% for the sixth generation.
This was the startling revelation Dr. Alejandrino “Andy” Ferreria, a widely respected entrepreneurship guru, made in his talk that served as the highlight of the August general membership meeting of the Association of Carriers and Equipment Lessors (ACEL).
Held at the One Shangri-La Place in Ortigas Center on August 16, 2018, the well-attended gathering was ACEL’s third general membership meeting for the year.
Holding a bachelor’s degree from the Ateneo de Manila University, Dr. Ferreria also has an MBA from the University of the Philippines and a doctorate in education management from the National University. In his presentation, entitled “Family Enterprise vs. Enterprising Family,” he pointed out that a family enterprise is “a nest of conflicts” which, often, prevents it from surviving beyond the next generation. His solution? Don’t be a family enterprise. Be an enterprising family instead.
“In an enterprising family, relationships are harmonious transparent and sustainable,” he said. “Thus, enterprising families are able to prevent, manage and resolve conflicts!”
In addition to Dr. Ferreria’s highly informative talk, the meeting featured product presentations from Filmetrics Corporation and Faequip Corporation. A new ACEL member, V1 Countrywide Realty Corporation, was also inducted during the event.