Family Owned businesses, high net worth individuals and private companies will benefit from Deloitte East Africa’s newly launched Deloitte Private Program.
Deloitte Private Program will offer audit, tax, consulting, risk, and financial advisory services to Micro, Small, and Medium Enterprises (MSMEs) mostly family-owned businesses.
In Kenya, more than 80 percent of businesses are MSMEs contributing about 33.8 percent of national output. However, most remain informal and unlicensed thus necessitating the need for a framework to connect them to the future.
The program comes on the back of Deloitte’s Global Family Business Survey 2019 that interviewed 791 executives from 58 countries about the challenges and opportunities in the family business.
Succession is a malignant issue in family businesses as 41 percent were confident about their plans for succession. Executives in family-owned businesses focus on maintaining ownership, ensuring a legacy, and preserving family capital as 26 percent stated having a plan for the CEO position.
According to Ms Mabel Ndawula, Deloitte Private Africa Leader, “family-run businesses appear just as prone to pursuing immediate priorities that, necessary as they may seem at the time, can fail to support the company’s ultimate vision and objectives.”
The Private Program will enable the family businesses to sustain their core business over the next 10 to 20 years. Only 71 percent of private firms were found to have planned for the next two to five years.
Deloitte East Africa CEO Joe Eshun said that Kenya is a resilient economy and East Africa’s business hub. Therefore, the accounting firm chose to launch the program in Kenya before moving to other African nations. Operations will be rolled out to other countries such as South Africa, Uganda, Ghana, and Angola.
Today, private companies have opportunities for investing in emerging technologies and expanding into global markets.
On the contrary, family businesses face challenges such as meeting new regulatory requirements and restyling the workforce.
Deloitte hopes to strike the right balance between short-term initiatives and long-term goals to propel family-run enterprises to success.
#NowListening on Anchor FM, Interview: Deloitte East Africa CEO – Mr. Joe Eshun and Africa Deloitte Private Leader – Ms Mabel Ndalawa. We’re on all your favourite podcast apps Google Podcasts, Spotify, Breaker, Pocketcast, CastBox_FM, ApplePodcasts.