For 2023, the main challenges are related to energy and the uncertainty derived from international events
Family businesses in the Region of Murcia are going to close 2022 with positive results, growing sales and creating more jobs. However, their expectations for the next financial year point to a change in trend. These are some of the main conclusions of the barometer prepared annually by the Mare Nostrum Chair of Family Business University of Murcia-Polytechnic University of Cartagena with the collaboration of the Murcian Association of Family Business (Amefmur) and the support of CaixaBank and the Cajamurcia Foundation .
This study, carried out during the month of October and in which 126 companies have participated, shows positive net balances in all variables except exports during this year, which confirms the recovery of business activity with respect to the crisis caused by the pandemic. .
The largest rise and the largest balance in the series occurs in the sale price. In 2022, 65.9% of companies have increased the price of their products/services. Employment has also grown, 52% of companies have maintained employment during 2022 and 31.7% have increased it. The turnover presents positive net balances, 41.5% have improved their sales in 2022.
However, expectations for the future are heading in the opposite direction: they point to a reduction in sales and employment by 2023. In fact, the Confidence Index of Family Businesses in the Region of Murcia goes from 16.9 (2021) to 1 (2022), although the results improve 6.8 points, expectations worsen 38.4 points.
These data were presented this Tuesday by the rector of the Polytechnic University of Cartagena, Beatriz Miguel Hernández; the Vice Chancellor for Students and Employment of the University of Murcia, Alicia Rubio; by the Minister of Business, Employment, Universities and Spokesperson, Valle Miguélez; the territorial director of CaixaBank for the Region of Murcia, Olga García; and by the study coordinator and director of the UM-UPCT Mare Nostrum Family Business Chair, Ángel Meroño.
Economic and business situation
These expectations are directly related to the economic situation derived from the Russian invasion of Ukraine, the historical inflation figures or the tightening of monetary conditions, which threaten the main economies.
Growth forecasts for the Region of Murcia in 2022 are between 3.8% and 4.6%. Looking ahead to the 2023 financial year, “the slowdown is also evident and greater than expected in Spain as a whole. The industrial specialization of the Region of Murcia, its high export propensity and the importance of imports of fertilizers and fuels can make it more vulnerable to the war in Ukraine”, explained Ángel Meroño.
Strategy and concerns
In this context, the barometer indicates that, when it comes to competing, family businesses continue to be mainly oriented towards offering service, for which reason 66% are committed to quality. Next in importance is efficiency, increasing the commitment to cost control by 7 points.
Regarding the concerns during 2022, the shortage of qualified personnel (46%), with an increase of 4 points compared to 2021, becomes the main limitation of the activity of family businesses. The weakness of the demand (43%) with a decrease of 3 points is in second place. Next comes competitive pressure (36%) and legal aspects (30%).
For 2023, the external factors that cause the most concern are, first of all, the energy issue (10% of the mentions) and the uncertainty caused by the events that are shaking the international scene (10% of the mentions), mainly due to the invasion of Ukraine. On a second step, access to raw materials (7%) and inflation (7%) continue to be worrying. The following elements are confidence in the economy (5%), fiscal pressure (4%), weak demand (3%) and political mistrust (3%). Regarding the business model, the main concern is cost control (7%). It is followed by maintaining or increasing the company’s sales (5%), the management of the family dimension (4%) and quality (3%).
family dimension
Business objectives continue to be more important than family ones, although in 2022 they experience a slight decrease. Business reputation ranks first (8 out of 10), and this year survival is ranked second (7.3 out of 10), followed by financial independence (7.1). The main family objective is to get the involvement of the family that owns it (7.9 out of 10); The interest in maintaining family control of the company also stands out (6.9 out of 10).
Regarding corporate governance, the option of not making changes continues to be the majority (63%) but with a drop of 3 points. 22% of companies plan to transmit the company to the next generation, reaching 42% of companies in the first generation. With reference to planning and governance, companies with a Board of Directors increased to 48%, however, companies with a strategic plan decreased 10 points to 39%.
Help for companies
Beyond undergraduate studies, universities provide a series of services aimed at improving innovation and professionalization of companies. Continuous training is the best known service (72%), being used by 22% of companies. The most used (40%) are student internships and employment exchanges.
In view of the results, the authors propose: on the one hand, to improve the offer of continuous training (contents, orientation, flexibility…) to reach two thirds of companies that know about it, but do not use it; and, on the other hand, since satisfaction with knowledge and technology transfer services is very high, ways should be promoted so that companies know and can benefit from the knowledge and research that the University treasures.
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