PwC Nigeria’s Senior Partner, Sam Abu, at the 2024 Family Business Summit, revealed that family businesses generate 70 percent of global wealth.
In Nigeria, they account for over 70 percent of SMEs and contribute nearly 50 percent to the nation’s GDP.
Abu emphasised the need for these businesses to adopt innovation to navigate modern challenges.
At the 2024 Family Business Summit, Sam Abu, Country and Regional Senior Partner for West Africa at PwC Nigeria, revealed a striking fact; 70 percent of global wealth creation comes from family businesses.
The summit, themed ‘Family Business Legacy; Strategies for Building and Maintaining Multigenerational Wealth,’ highlighted the significant role these enterprises play in driving economic growth and innovation.
“Over 70 percent of wealth creation is generated from family businesses,” Abu noted.
“In Nigeria, family members own more than 70 percent of small and medium-sized enterprises (SMEs), which contribute nearly 50 percent to the country’s GDP.”
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This data clearly underscores the importance of family enterprises to both local and global markets.
Abu explained that family businesses are unique because multiple generations, often related by blood or marriage, influence their decision-making.
However, he pointed out that these businesses face increasing pressures from global disruptions.
“Technological advancements, such as Artificial Intelligence, present challenges for operations,” he said.
“Moreover, sustainability and ESG (Environmental, Social, and Governance) principles are becoming central to business strategies.”
Abu also addressed challenges facing African economies, including inflation and currency fluctuations.
Despite these hurdles, he remained optimistic about Africa’s potential for growth.
Ultimately, Abu urged family businesses to adopt new strategies and embrace technological innovations to build stronger enterprises and secure their legacy for future generations.
