Martin Salas

THE CHALLENGES OF FAMILY AGRIBUSINESSES IN PERU

Family Bussiness Advisory

Published in Newspaper Gestion on 12/16/2020

Few activities can represent that spirit as well as agriculture. Beyond technical and scientific advances in this sector, farmers depend on variables that are often beyond their control: climate, epidemics, pests, droughts, global demand, etc. Planning, optimism and resilience are inherent attributes for them.

In a context where agribusinesses on the coast of Peru are being questioned, it is important to recognize not only their contribution to the economic development of the country but also the challenges that – those that are family-owned and run – face for the continuity of their business.

In Peru – and in the rest of the world – family businesses account for between 70 and 90% of all businesses in each country. Therefore, it is not surprising that agriculture and / or related activities have a very high family-owned business prevalence.

That is positive, and it means that the entrepreneurial spirit is renewed and prevails despite adversity. Out of it, every family business is born, pursuing a dream, nurturing it and making it grow over time. Entrepreneurship 101.

Few activities can represent that spirit as well as agriculture. Beyond technical and scientific advances in this sector, farmers depend on variables that are often beyond their control: climate, epidemics, pests, droughts, global demand, etc. Planning, optimism and resilience are inherent attributes for them.

This circumstance creates a very strong bond between the owners and the land. Although every entrepreneur has that emotional bond with his enterprises (almost as another child), that of the land is a special one: the land does not depreciate, it cannot be transferred and it cannot be replicated elsewhere. Land is never sold, it is a motto in the sector.

In Peru, however, after an agrarian reform, that history between the land and the entrepreneur had to be rebuilt again. Beyond some family tradition that led certain nostalgic entrepreneurs to return to the old family business, the reality is that the vast majority of agricultural entrepreneurs are first generation (1G) who are beginning to pass on to the second generation (2G). In this context, they are in the process of building a legacy not only for the family but also for their stakeholders.

https://gestion.pe/opinion/los-desafios-de-las-empresas-familiares-agricultoras-en-el-peru-noticia/