Integral diagnosis of family business in Bogota, Colombia

Abstract

<p>Dominant presence of family business is recognized at international business context level and specifically in Colombia where this is an efficient alternative for creation and sustainability of employment as well as for socio-economical problems-solving. However, the sustainability of these companies is threatened by instability generated mainly on the interrelationship family-company, which makes that only 13% of new-born companies in Colombia grow up to third generation (Inalde, 2002). The integral diagnosis of family business is close to the analysis of the overall environment from the socio-cultural, organizational, political-legal, technological-industrial, demographical and environmental dimensions. Family, production, marketing, financial, administrative and human management dimensions checked in the internal analysis and it is complemented with a comparison between family and non-family business. For this investigation two samples were used, first sample with 48 companies which were evaluated with surveys, second sample with 339 companies from Camara de Comercio de Bogota database in which financial data was emphasized. Finally, a scheme of financial management model for family business, based on the results of the diagnosis, is proposed to be developed.</p>