Rotarian Emmanuel Katongole, a renowned entrepreneur and chairman of Quality Chemicals Limited, has stressed the importance of integrity for family businesses to thrive across generations.
At the bi-annual Enjovu Family Business Conference, Katongole urged family businesses to maintain accurate financial records, differentiate between personal and business funds, and partner with supportive banks.
He emphasized the need for transparent financial management to ensure easy financial navigation.
“Choosing a bank that understands business needs is crucial for long-term success,” he said.
Jayesh Shah, Group Managing Director of Sumaria Group, highlighted the importance of formal structures, adequate succession planning, and balancing family and business interests.
“Conflicts will always be part of families, but they tend to deepen when it comes to family businesses. However, family businesses should set up a formal board of directors, which may include both family and non-family members, for better decision-making, especially during conflicts,” Shah advised, adding, “Roles must be clearly defined to ensure that family members in leadership positions are qualified and accountable.”
On issues of governance, Patrick Muta, Director of Advisory Services at PwC Uganda, emphasized the critical role of high-quality governance in family businesses.
“Effective governance is essential for the long-term success of family businesses. It creates a solid foundation that fosters trust, accountability, and transparency among family members and stakeholders, enabling them to navigate challenges more effectively,” Muta stated.
CSL Sim Katende, Partner at Katende, Ssempebwa and Company Advocates, advised family businesses to create customized constitutions to prevent conflicts and ensure growth.
“Many times, I receive calls from business owners requesting templates for existing constitutions, but I always urge them to take the time to create customised constitutions, that will reflect their unique values and goals. A well-crafted constitution not only provides clarity and structure, but also helps to prevent conflicts and ensures that everyone respects set rules and objectives for the business to grow,” he noted.
Dr. Nandawula Kanyerezi Mutema stressed the importance of prioritizing physical and mental well-being in family businesses. “Mental health is a universal issue that impacts employees’ well-being across the globe.”
Sam Ntulume, Executive Director and Chief Operations Officer at I&M Bank Uganda, highlighted the rewards of partnering with supportive financial service providers.
“I&M Bank started as a family business, so we understand the unique dynamics of running family enterprises, and we have made it part of our business module to provide tailored financial solutions and guidance to family businesses. Our goal is to empower families to navigate challenges and seize opportunities,” Ntulume said.
Annette Nakiyaga, Head of Marketing and Corporate Communications at I&M Bank, emphasized the importance of the partnership with Enjovu Family Business Conference in supporting family businesses.
She said by upholding integrity and adopting best practices, family businesses can build a strong foundation for long-term success and prosperity.
