Author: Borja Igual

62% of family business managed to increase or retained their personnel during 2020 compared to the previous year. This information was among the data gathered by the Family Business Watch, a body created by the Family Business Institute (IEF) and Deloitte; and was presented at the Annual IEF Conference attended by the President of the Catalonian Family Business Association (ASCEF), Amadeu Jori, on behalf of its associated companies.

Among other data, the Family Business Watch, gathers the pandemics’ impact on the business activity, as well as the balances of the family businesses that constitute the IEF and ASCEF, and the rest of the Territorial Associations of Spain Family Business. Despite the good employment data, the crisis caused by the Covid-19 pandemics had an adverse impact on family business turnover and economic performance.

Namely, the number of family business that registered losses last year tripled in 2020 compared to 2019, up 12% from 4%. In relation to this aspect, 46% of companies did not render profits, while the remaining 42% did. Alternatively, with regard to business turnover, more than half of family businesses (57%) saw it reduced: One out five companies suffered a decline of over 20%. According to the Family Business Watch, 36% managed to increase their turnover; this improvement, however, was mostly below 10%.

In the closing session of the Annual Conference, IEF President, Marc Puig, reaffirmed before the Government Deputy Vice-President and Minister of Economic Affairs, Nadia Calviño, the family business commitment to contribute to the economic recovery by claiming a favorable environment for investment, with clear and predictable rules, and a tax frame that “shall not the be worst of the rest of Europe’s.”

Cybersecurity is one of the major challenges that any business will address today, being increasingly present in any company’s operation. For this reason, and, aiming to learn how to adapt to the new context, the Catalonian Family Business Association (ASCEF) organized a conference at the Equestrian Center of Barcelona, in conjunction with EY Catalunya.

“Information is one of the most valuable assets to any organization, especially in a world where risks do not cease to grow. Therefore, it is essential that companies protect and maintain computing services and information, while addressing the more and more frequent cyberattacks that may jeopardize entire businesses,” expressed during his welcoming address Amadeu Jori, ASCEF‘s president.

Xavier Ferré, associated responsible for cybersecurity at EY Catalunya, started off the session describing the current context and highlighted that “companies’ digitalization and technological evolution, sophistication of the attacks and higher regulation linked to the obligation to safeguard data,” are three reasons why cybersecurity “is here to stay“. This is about an “organized crime, which has become the third illegal world economy” with surgical and targeted attacks.

The COVID-19 pandemics situation we are going through “has favored these attacks“, with security weak points emerging in the context of remote work over domestic network connections.

Ferré underscored that in the event of an cyberattack “time makes the difference, because in the event of complicated situations decisions need to be made rapidly.”  On the other hand, he emphasized the importance of being prepared beforehand and therefore “a set of actions should be taken into account such as identify, safeguard, detect, respond and recover“. “There are many tools and steps that we could develop and follow and that can help us on a daily basis,” he added. In this way, Ferré pointed out the importance of achieving resilience in our companies resilient through the ability to response to contingencies.

Wrapping up the conference, was Ángle Pérez, from CISO Autopistas (Albertis Company), who explained the company’s experience with cybersecurity.

Given the subject and points covered, the conference received a very positive reaction from the audience, being the first attendance session organized by ASCEF after the pandemics broke out.

Internationalizing the company is an important decision in every company. It is an important process involving different variables to be considered and kept in mind. “The first thing to be done is give credibility to the project and, to that end, it should be verbalized making it visible for everybody“, explained Jaume Alsina, CEO of Encofrats Alsina, during his presentation last week as part of the collaboration framework between the Catalonian Family Business Association (ASCEF) and Consell Empresarial d’Osona (CEDO) (Osona’s Business Council).

The lecture was intended for young members of the entrepreneur families from both organizations, ASCEF Forum and CEDO Club Fem Empresa, with the purpose of having Jaume Alsina explain the internationalization process and the process to become a GLO-CAL company, that is a global company with a local mind. Encofrats Alsina, with 33 current operation centers, operates in 17 countries and have completed over 5000 projects with a business turnover of 68% in international operations.  “Internationalization involves a cultural change at the entire company, not only at a single department.”

“When internationalizing the company, we should be patient and know it is a long-term project. We cannot make haste or go into adventure, but neither be lacking, for that would be throwing away the money. We should go little by little, since we cannot replicate the same model we have here“, stated Alsina, who also underscored the importance of “developing synergies with family businesses that had already completed the process“. The CEO of this ASCEF associated company, affirmed that “the philosophy of family business is a point in favor of this strategy, since we know how to wait and identify the maturity point of projects“.

Alsina considers that “each territory calls for different things“. “The way to establish it in each country cannot be standardized; the way to operate should be linked to the culture of each country, and the key is not trying to impose our culture and way of working“, he added.

Jaume Alsina noted that “internationalizing is also knowing when to stop a developed project“. “When a country does not deliver the expected outcomes, you need to know how to close it, and it should be done through certain established and objective parameters. That is why it is also important to design scenarios that help make decisions and take action if needed.”

• The agreement gives special attention the young people taking part in management and administrative areas of family enterprises
• In Catalonia, family businesses represent 88,3% of all private enterprises and 69% of gross value added, creating 76% of jobs of the private sector

Barcelona, April 20th, 2021

The Catalonian Family Business Association (ASCEF) and Consell Empresarial d’Osona (CEDO) (Osona’s Business Council) will work together to promote relationships among the region’s family businesses to help them reach their business goals. The actions to be carried out include the implementation of enabling tools to share experiences and the creation of valuable knowledge. Family business are the main type of business in the Osona region, especially in the food and agriculture industry (meat industry) and the metallurgic and mechanical sector, although tourism is rebounding.

Both organizations are concerned about issues like generation transfer, growth, professionalization, business internationalization, digital transformation and sustainability

This agreement also focuses on furthering entrepreneurial initiative and collaboration between young people from the CEDO’s space “Fem Empresa” (We do enterprise) and young people from the ASCEF Forum, through activities designed as points of encounter and education about topics that affect them.

According to ASCEF‘s President, Amadeu Jori, this agreement represents “a recognition of the region’s important family business fabric, as well as our strong willingness to work with the Consell Empresarial de Osona; especially with young people so as to get family businesses to develop their full capabilities“, he stated. In Catalonia, family businesses represent 88,3% of all private enterprises and provide 69% of gross value added (GVA) and create 76% of jobs in the private sector.

Meanwhile, CEDO‘s President, Lurdes Baulenas, considers that “this alliance is a symbol of the region’s spirit and of our determination to create synergies by furthering networking among companies. Family businesses continue to be one of our region’s entrepreneurial pillars, and it essential for their continuity in Osona and Catalonia to enable tools that make their youngest sectors grow.”

The first activity resulting from this relationship was the lecture about business internationalization delivered last week by Jaume Alsina, entrepreneur and CEO of Encofrats Alsina, an ASCEF associated company.  Alsina, a third-generation family business member who has worked at the company for 20, explained the company’s overseas growth process to become a GLO-CAL (a global company with a local mind).

• Catalonian family businesses represent 88,3% of all private companies, deliver 69% of gross value added (GVA) and create 76% of the private sector employment.
• Alliances among business entities help identify opportunities and guide access to European funds.

Barcelona, April 14th, 2021.

The President of Foment del Treball, Josep Sánchez Llibre, and the President of the Catalonian Family Business Association (ASCEF), Amadeu Jori Armengol, have subscribed a collaboration agreement between these entities to jointly promote the program “Next Generation EU” among Catalonian Family Business. Both presidents are betting on the public-private cooperation among different organizations as an effective tool to facilitate access to European funds.

“We should all work together on the way to economic recovery. The family business has an important reach in Catalonia, therefore a relevant role both in the economic framework and the social environment. In these exceptional times, collaboration and cooperation among institutions and enterprises will be the backbone of economic reconstruction and social transformation“, stated Sánchez Llibre.

Meanwhile, Jori Armengol underscored that “family businesses stand out for their long-term commitment, overt willingness to create value and employment, and their ability to adapt and innovate. This is why we can be an example of how to leverage the funds through committed and future-oriented projects“.

As a result of this agreement, Foment and ASCEF will work to dig into the opportunities that the European funds may provide across the Catalonian family businesses. Another of this alliance’s main goals is to align companies with the contents of the global action plan of Agenda 2030 and make the plan’s SDGs a strategic part of their businesses.

The subscription act was attended by the Director of the Business Section and Responsible for Parliament and Public Administrations of the Catalonian Employer’s Association, Benet Maimi, and its Networking Director, Carme Castellnou. On the ASCEF part, Amadeu Jori was joined by Ignasi Bonet, member of the Family Business’ Institutional Relations Commission.

Pilar Martínez-Cosentino, Executive Vice President of Grupo Cosentino, and Enrique Silla, CEO of Jeanología, attend the session “Transformation and Sustainability” from the series “The Family Business Shares”, organized by Family Business Territorial Associations.

Family businesses asks the Public Administrative Bodies for regulatory frameworks that encourage investments and business activity and do not penalize them.

The Covid-19 pandemic has brought an acceleration of the family business transformation processes towards a more sustainable model and inherent values of this kind of companies, like long-term approach, hard work and commitment to families, employees and their surrounding environment. They have proved to be an important ally moving forward along this path.

This was made evident in the online session called “Transformation and Sustainability” organized by the Family Business Associations linked to the Family Business Institution, among them the Catalonian Family Business Association (ASCEF). The session was attended by Pilar Martínez-Cosentino, Vice President of the Grupo Cosentino and Enrique Silla, CEO of Jeanología, who were moderated by the journalist Juanma Romero.

Pilar Martínez-Cosentino leads a company from Almería that produces and distributes innovative surfaces for design and architecture, with 5000 employees around the world and export sales representing 92% of its total turnover; in her opinion, the concept of sustainability goes beyond taking care of the environment: “At Cosentino, we understand sustainability in a broad sense, as a way of preserving the company for the future making it valuable for the environment, the society and all stakeholders.”

In this same line, Enrique Silla offered his view that sustainability would mean the alignment of three aspects: the planet, people and returns. “Reaching the sustainability goal would only be possible through profitability“, asserted the CEO of Jeanología, a textile company from Valencia present in 22 countries with a 98% of turnover out of exports, which has also managed to lead the textile industry transformation with its ground-breaking technologies capable of increasing productivity and simultaneously reducing water and energy consumption.

In the opinion of both entrepreneurs, sustainability has become a key concept of the vision of competitiveness in the business. “We live in a world where the consumer is not willing to buy a product if, for its manufacture, natural resources are destroyed or if child labor force is used in the process,” stated Enrique Silla, who also said that “If companies are competitive in sustainability and social responsibility, they will gain the customer’s credibility and trust, being able to attract and retain talent.”

Public Administrative Bodies Should Encourage, Not Penalize

Meanwhile, Pilar Martínez-Cosentino, underscored the need for companies to make the trip to sustainability accompanied by the Public Administrative Bodies and by society in general.  “If we want to take a leap forward as a society, and leave no one behind, we need to increase the companies’ competitiveness by adding talent, and for that, we need to promote dual career training programs and university studies that could meet the companies’ needs“. “Either we make a long-term plan for education in Spain or it will be difficult to evolve as a country“, he stated.

From the point of view of these two family entrepreneurs, the Public Administrative Bodies’ role in reaching this goal of increased business competitiveness involves the creation of regulatory frames that encourage investment and activity and do not penalize them. “We need incentives for job creation, R&D+i  and internationalization; we need the Administrative Bodies to help us be more competitive. We, the companies, are part of the solution and as we are more competitive and profitable, we could better contribute to sustainability“, stated Martínez-Cosentino.

Enrique Silla spoke on that same line and asked Public Administrative Bodies for “less interventionism and to let management on the hands of companies“.

Regarding the lessons taken from the pandemic for family enterprises, both entrepreneurs agreed to underscore the resilience ability that has been sowed in entrepreneurs.   “I think that we are now better prepared for an uncertain world; we have gained experience and agility to address new situations that could happen again in the future,” asserted Jeanología’s CEO. Pilar Martínez-Cosentino also made emphasis on a new management style that bets on more horizontal organizations capable of listening to customers: “We have reinvented ourselves and what comes after Covid will not be like anything we had before,” she pointed out.

In her view, the tools with which family companies will continue to lead job and welfare creation in society, will be that bet for sustainability directly connected to these organizations’ idiosyncrasy, which, to a considerable extent, is the result of a set of values deeply rooted in their hearts, like focusing on long-term approaches, family related values, hard work and commitment to employees, providers, customers and society.

However, in Pilar Matínez-Cosentino’s words, “family businesses should continue to struggle to gain size, not fearing inorganic growth through merging operations“, as Enrique Silla mentioned, and doubling down on communication “to show society the value of their main role, which is job and wealth creation.”

Series “The Family Business Shares”

The series “The Family Business Shares” is organized by the network of Family Business Territorial Associations, comprised of more than 1500 family enterprises leaders in their business activities.  The purpose of this series is to share among all the members of the network of associations their experiences with Covid-19, their challenges while minimizing the pandemics’ aftermath, as well as to show the importance of family businesses for job and wealth creation in Spain.

You can access the video of the session through this link in the private area of the website.

At the Catalonian Family Business Association (ASCEF), we deeply mourn the death of Marià Puig, at age 93, an example of family entrepreneur.

She was president and part of the second generation of Puig. A reference within the industry, she was a driving force for the internationalization of this perfume, fashion and cosmetics business group. She was also a member of the Family Business Institute, which she presided over between 1995 and 1997.

Puig Group, currently run by the third generation, is one of ASCEF’s associated businesses.

Our condolences to her family and all the people who are part of this business group.

Sustainable Development Goals (SDGs) are an initiative driven by United Nations to provide continuity to the development agenda, they have been adapted for every country, but also require the involvement of the private sector. Under this proposition, the Catalonian Family Business Association (ASCEF), organized a session conducted by Silvia Urarte, a Full Professor teaching Corporate Social Responsibility at Universitat Oberta de Catalunya.

The lecture, besides analyzing Agenda 2030’s 17 general goals, sought to demonstrate the practical link between these SDGs and businesses’ operations, as well as align their strategic goals with the different SDGs. “SDGs shall be part of the business culture and become a corporate asset of the business“, asserted Silvia Urarte.

“Governments are the main responsible entities for Agenda 2030, but the participation and involvement of the private sector is required to fulfill the different SDGs. It is not a matter of social responsibility, but rather an obligation for sustainability“, explained Urarte.

Among the SDGs stands out “universality” and transversality. “They are global as they are designed for every country and universal as they are designed for every person.” Their transversality is explained by the fact that working on the application of one of them involves the fulfillment of the other. For example, Objective 8 (to promote an inclusive and sustainable economic growth, full and productive employment, and decent employment for everybody) is related to Objective 12 (to ensure sustainable consumption and production practices).

You may review all the information about the lecture through the link provided on the web site’s private section.

The ASCEF Forum, a group made up of about 300 young members directly linked to ASCEF family businesses, is working on the design of its new action plan, which will drive initiatives related to the topics that most interest their associates like training, digitizing, use of AI in family business, social and corporate responsibility and generational renewal among others.

Ricard Oller has recently taken over Albert Campabadal’s position as president of the Forum. Campabadal remains in the board, which is also formed by Miriam Pujol, Olga Carbó, Anna Guixà, Guillermo Vidal, Marc Morillas, Albert Borràs, Juan Enrique Yxart and Carles Alsina. “Albert has left a high bar, and it is building upon his work that we will keep going forward with a board made up of great people and friends“, concedes Oller.

As part of this action plan, they intend, as soon as the pandemic-driven situation allows it, to invigorate the activity schedule and relaunch successful events like the Speed Company Speed Company Networking Event or the Summer Dinner, for which we always count on prominent lecturers from the civil society and the entrepreneurial community. The ASCEF Forum has also planned to set up collaborations with other entities having similar action groups.

The European Union has made a special effort to convey to both citizens and companies that its long-term budget, along with Next Generation EU (European funds for recovery), will be “the largest stimulus package ever funded through the EU budget“. It is a total amount of €1,8 trillion which, according to the political-economic organization, will help restore a post-COVID-19 Europe “which will be greener, more digitized and resilient“.

The economic sphere is experiencing a historic moment since institutions and the civil society in general are laying down the foundations for a mid to long term process of change.

Next Generation EU is an eventual, limited time emergency tool used exclusively for response and recovery measures, which will advance €750,000.00 million, of which over €140.000 will be allocated to Spain: €72,700.00 million as subsidies and 67,300.00 million as loans. An economic injection representing more than 11% of our country’s GDP.

These funds will be mainly poured over two large transformation vectors: green transition, with 37% of the aid, and digital transformation, with 33% of all the resources. Gender equality and social and territorial cohesion are included as transversal axis.

Next Generation EU funds will be materialized through the general government budgets following the approval of a Recovery, Transformation and Resilience Plan (PRTR, acronym in Spanish). The Government’s General Administration will transfer the funds to the autonomous regions and local entities by means of agreements and subsidies which will be linked to public sector policies from one of the priority axes.

Experts say that missions to transform the economy should be implemented. Some examples include generating new industries out of research centers like the design of the European chip, transforming tourism to make it more productive, a more cost-effective health-care system, transforming the automobile industry to produce electric and autonomous vehicles or strengthening the environment for startups in the digital and biotechnology industry.

For more information:

• Comissió Europea
• Deloitte
• La Vanguardia