This suggests a relatively short term perspective for many PNG business families. In the longer term, there is some greater consistency in prioritising the generation of long term value for the family and delivering value to customers, although some 24% of PNG respondents are still looking to maximise short term profits compared to only 10% of family businesses globally (14% in Asia Pacific). Perhaps an even more stark contrast is that only 17% of PNG respondents prioritise employee trust, compared to 32% globally (30% in Asia Pacific), only 7% are looking to innovate compared to 27% globally (28% in Asia Pacific) and only 2% are prioritising reducing the organisation's carbon footprint compared to 20% globally (12% in Asia Pacific). This suggests that many PNG family businesses are still in “consolidate and wait and see” mode rather than being proactive in developing new strategies. This can probably be explained by local factors such as the extended closure of the Porgera gold mine, uncertainty leading up to the 2022 elections, continuing foreign currency shortages and supply chain issues.Īt the same time, the growth ambitions of PNG family businesses over the next two years are less ambitious than their global counterparts, with 67% expecting to grow steadily or quickly compared to 77% globally (75% in Asia Pacific), and there were still 12% of PNG respondents who expected to restructure or downsize over the next two years compared to only 3% globally (also 3% in Asia Pacific). Interestingly, some 19% of PNG respondents reported a decline in sales, compared to only 8% globally (12% in Asia Pacific). However, this lags behind the 71% globally (66% in Asia Pacific) who experienced sales growth (and 43% with double digit growth (41% in Asia Pacific). The majority of family businesses in PNG (59%) have experienced increased sales in the last financial year as would be expected post pandemic, and 40% of these experienced double digit growth. This report focuses on what constitutes the new trust formula, what global family business leaders are doing to bridge the trust gap and how PNG leaders can transform their own family businesses to build trust.īefore we dive further into the trust issue, let’s see how family businesses in PNG have performed over the last year and their expectations for the future. However, the FBS for 2022 is indicating that the very nature of trust has changed and family companies are struggling to prioritise the strategies and actions that build trust with stakeholders and, just as importantly, to communicate your company’s mission, values and impact. Family and privately owned businesses have traditionally held a premium on trust, being driven by deeper core values and sense of community than multinational public companies. Family businesses also rely on the trust of the family members to ensure just and fair treatment and the avoidance of family conflict. Businesses rely on the trust of their customers, business partners, employees, shareholders and other stakeholders that they will be able to meet their expectations - whether that is product quality, service delivery, financial performance, employee engagement, business ethics and integrity or care for the environment and society. The focus of the FBS for 2022 is on trust, which is fundamental to long term sustainability. Given that the resource dependent PNG economy is highly reliant on the international economy, trade flows and commodity pricing, it has not been immune to the rising cost inflation and tightening of global investment liquidity. However, this was against the backdrop of significant global uncertainty caused by the geopolitical turmoil created by the war in Ukraine, heightened tensions in the AsiaPacific region, global supply restrictions and significant rises in inflation and interest rates. We also had a period of improved political stability with the continuity of the Marape Pangu-led coalition attaining a stronger mandate at the 2022 elections. PNG businesses appeared to have navigated well the challenges they had faced and there was increasing optimism due to the raised expectations for the re-opening of the Porgera gold mine and progression of a number of other resource developments (with a focus on the Papua LNG project). PwC Papua New Guinea’s (PNG) 3rd Family Business Survey (FBS), conducted in the last quarter of 2022, comes at a pivotal time for the PNG economy and PNG family businesses.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |