Sun Life Survey Predicted the Changes to Take Place in Family Business Model in Asia with New Generation of Business Owners

Sun Life's "Future of Family Businesses in Asia" survey also discovered that the COVID-19 pandemic would possibly weaken the competitiveness of younger businesses since they are not adequately prepared for unexpected business challenges and disruption.

FREMONT, CA: The multigenerational family business model could decline in Asia, as per a survey of over 1,300 family business owners in six Asian markets conducted by Sun Life Financial. The research revealed a changing mindset among first generation business owners as 69 percent of Hong Kong younger owners surveyed believe that there will be very less family owned businesses in future and around 60 percent believe that owners would sell the business rather than pass it on to the next generation.

Sun Life's "Future of Family Businesses in Asia" survey also discovered that the COVID-19 pandemic would possibly weaken the competitiveness of younger businesses since they are not adequately prepared for unexpected business challenges and disruption.

The research was designed to unveil how today's first-generation business owners operate. It focused on their perceptions and attitudes to risk, retirement and succession planning, and the future outlook for the family business model in the next decade. The survey was conducted in December 2019. It collected feedback from 1,378 business owners across six markets: Malaysia, Indonesia, Singapore, Hong Kong, the Philippines, and Vietnam. They are categorized into startups (0 to 5 years), growth companies (6 to 10 years), and mature companies (over 10 years).

"Family businesses are the foundation of Asia's economies. There remain many advantages to running a family business in Asia. But the younger generation of business owners are thinking differently about the future of their business. They prefer to build fast, sell and retire early, rather than pass it on to family as has been favored in the past. The COVID-19 pandemic has also created serious challenges for businesses that further complicates retirement and succession planning," said Leo Grepin, President, Sun Life Asia.