Even though there has been a globalized shift to move towards startups and external funding avenues as the primary business model to establish and manage businesses, Owner-managed businesses continue to be a key driving factor in the global economy with their contribution to the economy and broader social structure. From key local Small and Medium Enterprises (SME) to globally recognized brands, Owner-managed businesses are a key part of the growth structure of the economy.
Challenges Associated with Owner Managed Businesses
Throughout our research on business structures around the globe, we’ve uncovered the exploration of the overlap of owners, shareholders, directors, and management structure within the company. This convolution of responsibilities and delegation can lead to inherited complexities in the management structure. The integrated roles from the strategic perspective require an aligned strategy from a taxation and ownership perspective while keeping in considering the trends in the underlying market.
For private companies, the development of the business process and financial success expands over the course of generations. This can lead to other complexities over the course of the family and the management of the business process. It is important to have a well-defined strategy in place to ensure that a viable management structure and succession plan are defined to continue the growth of these businesses over the course of the upcoming challenges and for the next generations.
Navigating through the Covid 19 Pandemic
Even though the Covid 19 pandemic has been a major disruptive force for most global businesses due to its detrimental socio-economic toll, it has also led to the creation of new opportunities and growth areas where Owner-managed businesses can capitalize. The development of the virtual eCommerce areas is identified by the Web Gateway team as the primary area where owner-managed businesses can direct their expansion.
Strategic management of the businesses has led to the creation of agile workflow mechanisms and increased digitalization across the board. The creation of digital avenues for businesses in diverse industries has been a central element in the development process, with a specific focus on online and consumer-end retail avenues.
Primarily challenges for the business emerge in the form of complex social distance and protocol-based business management requirements, which put the added pressure of educating business owners with handling their businesses through the Covid challenge. Throughout the course of the past year, every business has faced the challenge of adapting to the new normal. Even though the primary nature of the challenge has been difficult to face, major opportunities have also emerged throughout the course of the pandemic.
A key area of insight in this regard is the exploration of trend-longevity to evaluate which trends created during the pandemic will have persistence beyond the Covid landscape. The shift in consumer trends has increasingly pointed towards customers preferring digital purchases. It is important for businesses to evaluate the prospects of this shift and adapt their businesses accordingly.
Navigating Global Relations
A primary challenge throughout the pandemic has been the differences in the policy adopted by different regions. From the Covid vaccination drive to broader social distance policy, navigating global trade and management operations has been a major challenge. Businesses have to adapt to the trade restrictions and foreign policy requirements as a key part of their business strategy to prevent the negative fallout stemming from the post-Covid reality.
Businesses are working through policies related to exports and managing their supply chain dimensions as a key part of their business structure. Another key element identified has been the increased shipping pressure in global logistical structures leading from economic reopening in leading regions like China and India. Businesses that factor in this element into their strategic decision-making are able to expand their opportunity and enhance their positioning.
Strategic Growth Focus
The past year has been a cornerstone for Owner-managed businesses to realize the importance of having an adaptive business with the capability to adapt to incoming changes in global business conditions. The structure and survival of these businesses are emerging as a reflection of the implementation of strategic policies and procedures that have been well executed.
The Web Gateway team has identified the strategic focus and policy as the key area of these businesses to navigate the challenges of the post-covid reality. The learning outcomes and survivability of these structures also have extensive learning insights for other businesses to adapt to the economy instead of maintaining a static focus.