Emerging Trends in Family Business Governance Unveiled in BNP Paribas-SDA Bocconi Report

Emerging Trends in Family Business Governance Unveiled in BNP Paribas-SDA Bocconi Report

(IN BRIEF) BNP Paribas Wealth Management and SDA Bocconi School of Management have collaborated to release an exclusive report on family business governance in Europe. The report emphasizes the significant role of family firms in driving economic growth and employment. It provides key insights into the expectations of entrepreneurial families and highlights emerging trends such as social impact, digital transformation, and education for responsible ownership. The report emphasizes the need for formalized family governance structures and the importance of involving external advisors. It aims to guide managers and advisors in addressing family governance to ensure the long-term success of family businesses.

(PRESS RELEASE) PARIS, 30-Jun-2023 — /EuropaWire/ — BNP Paribas (EPA: BNP), European Union’s leading bank, announces that BNP Paribas Wealth Management has partnered with SDA Bocconi School of Management to release an exclusive report that delves into the latest issues and trends surrounding family business governance in Europe. Family firms play a crucial role in the European business landscape, accounting for a significant percentage of businesses and driving economic growth, employment, and social development.

The report, created with insights from leading families and entrepreneurs across Europe, sheds light on the unique expectations of entrepreneurial families. It aims to guide managers and advisors in effectively addressing family governance, a key element for the long-term success of family businesses.

Key Insights:

• Family firms in Europe contribute to 50% of the European Union’s GDP and generate 40-50% of private sector jobs.
• Many successful European companies are family-owned, with nearly half of the top 1,000 Italian companies, 40% in Germany, and 28% in France being family businesses.
• European companies lag behind their global counterparts in formalizing family settings, with only 24% having a board of directors compared to 59% globally.
• Collaborating with external advisors is essential for gaining unbiased perspectives on complex family issues, with over 75% of respondents relying on referrals from their professional networks and friends when selecting external advisors.

Main Emerging Trends:

1. Social Impact: The next generation of affluent families in Europe is increasingly drawn to impact investing, with 32% planning to donate resources to charity. This calls for a reconsideration of governance structures, asset allocation, and wealth responsibilities.
2. Digital Transformation: Family firms are outperforming non-family firms in digitally transforming their business models. Around 72% of European family firms prioritize innovation as a short to medium-term goal.
3. Education for Responsible Ownership: Next-generation family members play a crucial role in business continuity and long-term strategy. They are involved early on in marketing and social media campaigns (46%), integrating sustainable practices (35%), and developing new product lines (41%).

The report highlights the importance of understanding family dynamics and implementing effective governance strategies to ensure the continued success and sustainability of family businesses.

“Family firms are the backbone of our European economy. They have proven their resilience and major role in our communities, deploying capital over the long run, and integrating sustainable practices in their daily operations.” commented Pierre Ramadier, Global Head of Entrepreneurs & Families coverage, BNP Paribas Wealth Management. “In light of a more complex and uncertain environment, a well-structured family governance is fundamental for long-term success of family firms. They count on us to accompany them in adopting a distinctive approach to governance suited to their family values, purpose, and business model.”

“Family firms play a significant role in the Italian economy. They are strongly rooted in the territories in which they operate and represent the excellence of Made in Italy both nationally and abroad. In several cases, family members are directly involved in business decisions, in others the top figures are external managers and, therefore, every company needs specialized and customized financial solutions” commented Luca Bonansea, Head of BNL-BNP Paribas Private Banking and Wealth Management. “Thanks to our business model, which integrates all the entities of the BNP Paribas Group into a global approach to customer needs, we support families and businesses in preserving, developing and giving continuity to their corporate assets, with a careful look at innovation, sustainability and new generations”.

Find the full report on the BNP Paribas Wealth Management website

About BNP Paribas Wealth Management

BNP Paribas Wealth Management is a leading global private bank and the largest private bank in the Eurozone with more than €406 billion worth of assets under management as of March 2023. Present in three hubs in Europe, Asia and the Middle East, it employs over 6,800 professionals who support High-Net-Worth and Ultra-High-Net-Worth individuals in protecting, growing and passing on their assets. The bank aims at building a sustainable future by combining its deep expertise and reach with its clients’ influence and desire for impact.

https://wealthmanagement.bnpparibas/en.html

About BNP Paribas

BNP Paribas is the European Union’s leading bank and key player in international banking. It operates in 65 countries and has nearly 185,000 employees, including more than 145,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance and Arval; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Turkey, and Eastern Europe. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group’s performance and stability.

Media contact:

Marie Clouard
Wealth Management UX & Innovation
+33 (0)6 98 37 45 70
marie_clouard@bnpparibas.com

SOURCE: BNP Paribas