ADAPTING TO THE 'NEW NORMAL': THE IMPACT OF COVID-19 ON FAMILYOWNED BUSINESSES

Abstract

The COVID-19 pandemic brought about unprecedented challenges that affected businesses globally, and family businesses were not excluded. This paper examines the impact of the COVID-19 pandemic on family businesses. Drawing from the PricewaterhouseCoopers (PwC) Family Business Survey 2021, which covered 2,801 family businesses in 87 territories and was conducted from October 5, 2020, to December 11, 2020, the paper explores how the pandemic changed their strategies, priorities, and outlooks. The paper highlights the financial resilience of family businesses and their unique advantage in terms of reputation and trust. However, it also emphasizes the need for these businesses to prioritize an environment, social, and governance (ESG) agenda and invest in technological transformation to ensure their longevity and continued success. The paper also discusses the challenges many family businesses face regarding the interpretation of ESG, with many prioritizing expansion and diversification over sustainability. The author suggests that regulations and market requirements could drive family businesses to focus on ESG investment and prioritize sustainability to ensure their legacy and license to operate in new and existing markets. The study concludes by calling on family businesses to update their strategies to adapt to the changing business environment, emphasizing the importance of focusing on an ESG agenda, building a culture of innovation, and proactive family governance, among other areas.