The people you work with and being close to them are essential aspects in a family business, said Florin Madar, and this was evident during the pandemic, when his business went ahead because people “reacted calmly ” and “maturity” in the decisions taken.

“I think I’ve learned a lot in the 30 years I’ve been running a family business. First of all I learned that you have to be close to the people you work with, they are essential in everything you do. A concrete example was the pandemic, when we didn’t know what was happening. In this case the decisions I made had to be explained and supported. I was happy to learn that people reacted calmly, maturely, and our business went forward.”

Many family businesses fail to make the transition from one generation to another and only about 3% manage to reach the fourth generation.

“Many businesses do not make it past the third generation. According to statistics, about 30% of businesses pass to the second generation, 10% to the third generation and only 3% to the fourth generation. This process of passing from one generation to another is not very easy and that’s why we try to educate our children to take over this business, to be able to manage and develop it”, Florin pointed out. But.

He explained that, in his opinion, the continuity of a family business is closely linked to certain clear principles, which must be passed on to the next generations: “education, work, fairness and a job well done”.

“There is a Chinese proverb that says the first generation builds wealth, the second generation manages it and the third generation destroys it. I believe that difficult times make people stronger. The first generation, in order to build something, had to do so in difficult times. Of course times are changing, but it’s hard, especially for the first generation. The second generation, benefiting from the education and direct influence of the first generation, should administer it. Finally, the family spirit must be passed on to the third generation, which must be based on certain very clear principles. In my opinion these are: education, work, fairness and job well done. If this spirit does not manage to pass over the second generation, then the business will suffer”, he explained.

Succession is a subject treated very seriously in a family business, says Florin Madar, and those who are responsible are aware of this stage.

“The first generation is very serious about succession. We need to be aware of this problem, because many do not. Those who run businesses and are responsible for themselves and their families, however, think seriously about this aspect. They are European family businesses that have lasted for seven or eight generations, and we are trying to find out this type of experience as well”, concluded Florin Madar.

You can find the continuation about family businesses HERE

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