Azerbaijan, Baku, June 11 /Trend, N.Ismayilova/
On May 11, International Finance Corporation (IFC) presented manual on management of family firms, containing recommendations on how to improve their operations and ensure its duration in Azerbaijan.
According to manager of IFC project for implementation of modern standards of corporate governance in Azerbaijan (ACGP) Caroline Bright, as the family-owned companies are particularly specific, the role of corporate governance are even more important.
"Family companies exist all over the world, and we are observing a growth in their number in Azerbaijan. It is now becoming usual to create family businesses. Azerbaijan is a country that moves towards market economy and in the state there are companies undergoing the first phase of a family company, and with the help of this manual , we want to support the family companies, ensure their long-term activities and in the future, switch them to the management of the next generation," said Bright.
According to her, the IFC did not conduct market research on the presence of family companies, but their market share is certainly great, including in companies with which the Corporation.
According to her, the IFC did not conduct market research on the presence of family companies, but their market share is certainly great, including in companies with which the Corporation cooperates.
According to the ACGP project representative Agshin Alizadeh, 65-75 percent of family companies incurs bankruptcy, or sold by the owners. Only 5-15 percent of family businesses pass to the third generation.
The manual was prepared by the head office of the IFC, with technical support which has also been translated into Azerbaijani. Today, IFC intends to provide 500 copies of the manual to joint-stock companies, higher education institutions and the media outlets.