Fam­ily mat­ters when it comes to en­ter­prises

The Myanmar Times - - Front Page - HTIN LIN AUNG htyn­lyn­naung@gmail.com – Trans­la­tion by Khine Thazin Han and Win Thaw Tar

New num­bers from the In­ter­na­tional Fi­nance Cor­po­ra­tion show that fam­ily busi­nesses ac­count for the vast ma­jor­ity, up to 83 per­cent, of Myan­mar’s en­ter­prises.

FAM­ILY busi­nesses ac­count for the vast ma­jor­ity of Myan­mar’s en­ter­prises, ac­cord­ing to the In­ter­na­tional Fi­nance Cor­po­ra­tion (IFC).

New num­bers from the or­gan­i­sa­tion, which is a mem­ber of the World Bank Group, showed that there are more than 620,000 en­ter­prises in this coun­try with ap­prox­i­mately 83 per­cent be­ing fam­ily busi­nesses.

How­ever, the IFC also found that only 127,000 of the 620,000 were ac­tu­ally reg­is­tered – 99pc of which were small and medium en­ter­prises.

“Myan­mar needs to work very hard in [fur­ther] de­vel­op­ing fam­ily busi­nesses,” said deputy chair of the Union of Myan­mar Fed­er­a­tion of Cham­bers of Com­merce and In­dus­try (UMFCCI) Maung Maung Lay.

Maung Maung Lay added that th­ese fam­ily busi­nesses should be “pro­tected” from “be­ing over­whelmed by large for­eign in­vest­ment”.

IFC ma­te­rial said that many lo­cal com­pa­nies are still strug­gling with trans­parency is­sues, un­de­vel­oped boards of di­rec­tors and other business frame­work is­sues.

In re­sponse, the IFC and the UMFCCI have is­sued a Fam­ily Business Man­age­ment Hand­book, which in­cludes in­for­ma­tion on ad­dress­ing th­ese sit­u­a­tions.

The IFC has also pro­vided loans to sev­eral fam­ily busi­nesses around the coun­try.

Photo: Staff

Cus­tomers shop at a small business in Yan­gon.

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