Drivers of Sustainable Entrepreneurship in Family Businesses.

The event began at 2:30 PM with a brief opening by Mr. Lucky C. Subadi, S.Pd., M.M., a Family Business lecturer at Universitas Ciputra Surabaya. The event then proceeded with a presentation by Dr. Rania Labaki, Associate Professor of Management specializing in Finance and Family Business, and Director of the EDHEC Family Business Research Centre. The insights she shared today were drawn from her research and practical experience. According to her, every organization needs to know where it is headed and decide on the means to achieve its goals. To ensure the success of this process across generations, individuals must remain open-minded and ensure that emotional, financial, and social aspects are preserved to maintain family harmony. At the same time, they must not disappoint family members who aspire to join the family business.

Initially, the primary business owner often fears creating competition among siblings or cousins, who should instead be trusted to delegate responsibilities and believe in the process. Several facts about succession were shared, highlighting that only about 30% of family businesses survive to the second generation, 10% to the third generation, and around 4% to 1% operate into the fourth generation or beyond. These statistics reveal that the first generation generally takes on all responsibilities, the second generation develops what has been established, and the third generation often leads to its decline. This phenomenon distinguishes Family Business Entrepreneurship. Some intergenerational risks include ownership risks, business performance risks, and control risks. Long-lasting companies tend to exhibit higher ownership risk levels but lower business performance and control risks.

According to Dr. Rania, cohesion is identified as a factor specific to family businesses. One action that can contribute to success is understanding and focusing not only on the senior generation but also on embracing stakeholders as part of a social innovation process that allows the next generation to integrate into the community.

Following the presentation, several attendees posed questions to the speaker regarding the success of family businesses and lessons on sustainable business models. The session with Dr. Rania Labaki concluded with the presentation of a certificate by the moderator. The event was then followed by the closing of the Global Entrepreneurship Week Indonesia 2024 at Universitas Ciputra Surabaya, marked by the completion of the final seminar with both speakers.