In a recent report released by HSBC, entrepreneurs have managed a unique blend of familial values and global aspirations, highlighting the significant role of the family in business endeavours.
According to the Global Entrepreneurial Wealth Report 2023, conducted in partnership with AON UK Limited, a substantial 66% of UAE entrepreneurs trace their roots back to family business backgrounds. This strong familial foundation not only reflects the cultural fabric of the region but also influences entrepreneurial decision-making and long-term business strategies.
Furthermore, the report highlights the UAE’s entrepreneurial community’s robust global outlook, with over half (51%) of respondents actively operating in multiple markets. This inclination towards global expansion is mirrored in their investment preferences, where family values extend beyond traditional business ventures to include investments in real estate and educational pursuits for future generations.
Despite their outward-looking approach, a striking 79% of UAE entrepreneurs expressed little intention of selling or passing down their businesses in the next five years, signalling a commitment to long-term business ownership and continuity. This reluctance to exit the business reflects a deep-seated belief in the legacy and enduring value of family-run enterprises.
However, challenges persist in succession planning, with concerns revolving around the next generation’s work ethic and interests. While entrepreneurs acknowledge the importance of transitioning wealth and leadership roles to the next generation, navigating these familial dynamics poses a significant hurdle.
Nevertheless, the report shows the resilience and adaptability of UAE entrepreneurs in navigating the complexities of succession planning while upholding cherished family values.
