'Professionalising the Family Business' was the theme of the third edition of the BOV-PwC Family Business Forum which was held on the 13th May at the Xara Lodge. Hosted and moderated by Vanessa MacDonald the forum addressed the challenges that family businesses face whilst analysing solutions which could help this important sector in the Maltese economy.
The forum was addressed by Kevin Valenzia, PwC Malta's Territory Senior Partner, Joseph Agius, Chief Technology Officer at Bank of Valletta, Joseph Muscat, Head of Advisory at PwC Malta, Chris Cardona, Minister for the Economy, Investment and Small Business and Charles Borg, Chief Executive Officer at Bank of Valletta.
In his opening address, Kevin Valenzia set the context of family businesses in Malta. Based on the research which PwC has been undertaking over the past years, he highlighted the key changes and priorities faced by family businesses, whilst confirming that their outlook is similar to their peers globally. "Family businesses play a major role in the overall economy. Ownership and succession planning remain key concerns for this sector, along with other challenges like such as harnessing technological advancements."
Joseph Agius delved deeper into the impact of technological advances and how digital business is shaping the world. He briefly traced the evolution of the business models, concluding that, "In today's disruptive world, successful businesses are those that manage to capture the combined power of people, businesses and things to create value." As a case study, he referred to the interactive bov.com that acts as a hub of knowledge, enabling visitors to connect with the Bank using the path of their choice.
Joseph Muscat focused on how the pace of change can be managed. "In today's business environment where change is the only constant, only proactive companies that adapt to will survive." He highlighted the key role of innovation, saying that "Innovative solutions break down barriers to markets, primarily international ones. Technological advances feature as one of the top three global trends most likely to transform businesses over the next five years, and local family businesses have to come to terms with this."
Minister Cardona focused on the Family Business Act, explaining the context in which it was drawn up and the challenges which this Act seeks to address. "The Act sets out to define a 'family business'. We are proposing a broad definition, which, nonetheless will help us to better understand the concerns and assist eligible players. In this manner, this Act will be a first across Europe."
A panel discussion moderated by Kevin Valenzia, which included Geoffrey Debono (Michael Debono), Jeremy Cassar (Marsovin) and Matthew Grech (Smart Supermarket), gave important insight to concerns and challenges being faced by current family businesses, with particular focus being made on pressures put on third and fourth generation leaders. The participants highlighted the challenges when introducing professional people in management structures within the business, whilst safeguarding family ownership. Attracting and retaining key executiveswas one of the key issues discussed.
In his closing speech, Charles Borg gave an overview of scenarios faced by family businesses in Malta, where research shows similar trends to the rest of Europe. Tapping on Bank of Valletta's experience, he highlighted that, "It is critical for any business to embrace change and always be on the lookout to broaden its horizons." He reiterated the Bank's commitment towards the growth of this sector, which represents the backbone of the Maltese economy.