Month: April 2020

Eighty-six per cent of family businesses state that their activity has dropped, with 42% saying that they have experienced falls of over 60%. These are among the results of a Bank of Spain report released today in which ASCEF participated by canvassing the opinions of its members. Almost a third of the companies surveyed say that they will suffer a decrease in profits of over 80%. Despite this, almost half of them have managed to reduce the fall in employment to below 20%.

Family employers regard government measures as insufficient, although the most popular are the facilities for the temporary adjustment of employment, the special financing lines (ICO), the guarantee lines and public guarantees and the deferral of tax debts.

The Bank of Spain estimates that the disruption of this year’s activity and employment “will be very severe” but that it will be mitigated to some extent by measures aimed at providing short-term liquidity and income. According to these calculations, the public deficit in 2020 may be within a range of approximately –7% to –11% of GDP. Meanwhile, public debt this year could be between 110% and over 120% of GDP approximately.

April 2020.- In the current situation, many companies have become allies of the groups most exposed to the coronavirus and are acting to support the most vulnerable citizens. Family businesses, which are especially committed to their environment, are a good example:

The pharmaceutical company Almirall has launched an action plan containing a number of measures to respond to COVID-19 and assist health professionals. These include the donation of protective equipment (masks, gloves and gowns, among others) and topical creams to reduce dry and damaged skin due to the prolonged use of masks and disinfectants. The company has also partially modified its production facilities in order to manufacture antibacterial gels. It also plans to collaborate with the Leitat Foundation to develop ventilators manufactured using 3D printing for hospitals and intensive care units.

Meanwhile, Girbau, the company for comprehensive professional laundry solutions, has provided the Clínic hospital in Barcelona with a portable washing machine to help with the task of cleaning and disinfecting textiles. This machinery washes and disinfects daily up to 720 kg of medical staff clothing and tests the behaviour of materials when they are being washed.

The dermocosmetic company MartiDerm has given the Red Cross 2,500 units of the MartiDerm Covid-19 Dermatological Support Kit. This consists of three products: a hydroalcoholic disinfectant gel, an intensive hand cream and three cream patches for tired legs.

For its part, Cacaolat, a company that is 50% owned by Damm, has provided 60,000 bottles of cocoa and milk shakes to a variety of organisations to help alleviate the effects of the situation and express its gratitude to health personnel for their efforts. Donations have been made to associations such as the Food Bank, the Red Cross, Caritas, the Barcelona College of Physicians and a number of groups from healthcare institutions.

Carolina Herrera, which is owned by the Puig group, has adapted its tailoring production line in the town of Vacarisses to make gowns and masks for healthcare centres and the food industry.

You can see other examples of solidarity and good practices by ASCEF members.

April 2020 / The Covid-19 pandemic is producing a crisis in which family businesses will have crucial role to play given their quantitative economic importance. They account for 88% of all private sector companies, contribute 69% of the Value Gross Added (VGA) and generate 76% of jobs. In the current situation, family businesses take decisions to adapt and pivot their businesses accordingly.

The family spirit of companies, according to Pilar Marquès, Director of the Chamber Chair in Family Business at the University of Girona, one of the five chairs in Catalonia sponsored by the ASCEF, provides characteristics that are not to be found in other companies. These include unity of leadership, experience accumulated over the years and by previous generations and the ability to adapt and discover resources in the face of difficulties.

Given the current circumstances, the difficulty of the environment reduces possible differences between family members and mobilises family owners towards company changes in order to withstand obstacles. “Owners consider their company to be more than an investment. They are capable of taking decisions that are not financially optimal but, socially and emotionally, they are the ones that maintain their responsibility and pride in being entrepreneurs,” Ms Marquès explains.

“In family businesses, owners regard responsibility for their decisions more personally,” she adds, while “difficulties awaken a fighting spirit and resilience more than in non-family companies.”

The experience accumulated in family businesses over the generations provides good strategic detection: it helps to better understand the environment and the magnitude faced, as well as possible solutions. Furthermore, family businesses are capable of finding solutions to their limitations and possess advantages in assigning their resources to new functions.

The Catalan Association of Family Businesses (ASCEF) supports the platform #estoNotienequePARAR  (this needn’t stop). This is an initiative promoted by over 2,000 companies that, together with Mercadona, form an efficient agri-food chain aimed at highlighting those companies and employees who are currently doing “what is necessary so that the wheel of the economy does not stop.”

The initiative holds that it is necessary to keep working so that, once the pandemic is over, the country “can achieve a faster economic and social lift off”.

The platform publicises inspiring stories about both individuals and companies and disseminates information that supports and acknowledges the work done by all of them.

The Family Business Institute (IEF), which has links to the Catalan Association of Family Businesses (ASCEF), has called on central government to focus on recovery through a plan for «returning to normality» with «clear rules» for companies, safety protocols and sectoral actions in the face of the impact of COVID-19.

The IEF President, Francisco J. Riberas, said “the most important thing now is to prepare for this economic reactivation” and the important role of family businesses should be taken into account in the recovery process.

Mr Riberas has stated his support for new Moncloa Pacts that would improve the current model.

April 2020.- Family businesses are not only battling to adapt to the effects of the COVID-19 pandemic. They are also working on solidarity-based projects to help hospitals function, improve the safety of professionals and care for them in their daily work.

ASCEF members are a good example. These are some of their initiatives:

The veterinary pharmaceutical company HIPRA has made its biotechnology facilities and equipment available to the health authorities. This includes nearly 700 sq. m. of laboratories equipped with the latest diagnostic technology to help manage and obtain results from SARS-CoV-2 coronavirus tests.

In the case of Tous, the company has adapted its 3D printing machines to produce components for ICU oxygen bypass tubes. It has also donated over 100 acrylic sheets for the production of methacrylate urns to protect hospital berths.

For its part, the multinational Puig has made an offer to the Government of Catalonia to produce hydroalcoholic and sanitised solutions for use by health personnel and the public. This will require the adapting of some of its production lines.

The Saica Group, a company that manufactures recycled paper, has made a donation for the acquisition of face masks and diagnostic tests.

Grup Gepork, a veterinary distribution company, has also donated medical supplies to the Vic Hospital Consortium.

The Damm Foundation has positioned itself alongside healthcare professionals with the delivery of over 26,000 litres of mineral water to 12 hospitals and another 4,000 litres to social entities that work with the most vulnerable groups.

Meanwhile, the Anudal company, which is devoted to aluminium carpentry and based in Badalona, has sent pizzas to the Germans Trias Hospital (Can Ruti) for the workers there.

In the case of Planeta, the publishing and communication group has enabled free access to its educational platform. AulaPlaneta is now available to teachers and 5th and 6th year Primary School pupils as well as those in Secondary Schools.

For its part, the Ferran Sendra Studio has created specific content related to creativity with the aim of using confinement constructively.