Institutionalization Rate 66 Percent Citing examples from the Member Profile and Trends Survey, which published the results in 2021, Urhan said, “53 percent of the participants represented the second generation and 26 percent represented the third generation. In the survey, the topic of institutionalization of the family comes to the fore in the threats our family businesses see in the future. The biggest threats are the assignment processes of new family members, family conflicts, and the transfer of leadership. Risk taking, innovation, delegation of authority, auditing and professionalization are in the second place as the topics related to the institutionalization of the business. In the third place, external factors are seen as threats. 48 percent of the participants think that they should diversify their family business by investing in new areas in the future. In 69 percent of the enterprises, the board of directors works effectively and in 40 percent the executive board works effectively. 66 percent of the surveyed family businesses see themselves on the way to institutionalization. The rate of those who think that they are institutionalized remains at 23 percent," he said. Average Age of Family Businesses is 25 Years Urhan said, “65 percent of the participants stated that their leaders have served an average of 21 years or more in family businesses. One third of the families who participated in the survey stated that they had problems due to the inadequacy of the transfer process planning. The average age of family businesses is 25 years. In other words, the fact that they are eroded by 70 percent after the leader reveals that a correct transfer process has not been prepared.” On the second day of the congress, paper presentations were made. |