The Friends of Aspen held their twelfth annual meeting in the newly-restored Salone Barozzi at the Milan Institute for the Blind. At the opening of proceedings, the group’s latest members were introduced, a brief account was given of the group’s activities over the past year, and a range of matters raised by group members were discussed, including the choice of discussion topic for the next annual conference to be held in the spring. The meeting then invited its guest speaker, Giuseppina Amarelli Mengano, an entrepreneur and executive active in the cultural sector, to address members on the issue of how Italian family businesses are handling the transition to the 21st century in economic terms, drawing on her firsthand experience as a leading representative of a family firmly-rooted in the region of Calabria, whose centuries-old involvement in business even predates the family company’s establishment in 1731. Participants at the meeting who head up long-running firms stressed the importance to their businesses of having strong links with their local community, keeping a constant eye on managing the situation both within and outside their firms, protecting their human capital (including by fostering employees’ pride in their local identity and traditions), forging close relations with local and national academic institutions, and being “leaders in their field”, whilst being alert to changes in the global scene and developing new products, including in conjunction with other businesses. Also highlighted was the need for businesses to avoid anchoring themselves to particular political currents or living off subsidies, to ensure they are not reduced from entrepreneurial risk-takers to mere “takers”.
The guest speaker’s address sparked a discussion of various viewpoints and issues, including the difficulties associated with handing over the reins of ownership to future generations. Some of those present observed that handovers to another family member are often seen as denoting weakness, particularly in terms of growth. International statistics on this point suggest that the success of business handovers from parent to child is not exactly a cut-and-dried affair: it seems that only about 10% manage to hang on to the company. It was stressed, however, that it is always important to look back to one’s roots in order to be able to propel one’s business into the future. The participants highlighted that key factors to ensuring the success of generational transitions are a willingness to make sacrifices and an ability to identify who among the various family members possesses the “right” qualities, which should also extend to urging children to gain work experience away from their parents, particular during the early stages of their career development.
Finally, the participants considered the example of a fourth-generation Venezuelan owner-manager of a food & beverage business with a turnover to the tune of several billion dollars. It was noted that his family has succeeded in retaining family ownership over the years and has not shied away from removing those deemed unworthy. In the man’s own words, his family has followed just two rules: “trust and common sense”, precepts which the participants agreed should also find application beyond the realms of family-run businesses.