This week's Studio Guest: Patrick Adenauer

President of the Association of Independent Entrepreneurs and Family-owned companies DW-TV: We're joined now in the studio by Patrick Adenauer, President of the German Association Family Businesses. Thank you very much for joining us. Some of the most successful firms here in Germany are in fact family businesses: What's their secret? Patrick Adenauer: They're very innovative; they're usually not too big; they have a very dedicated workforce - employees who are very well-trained; they often have 80 percent export, which means they are ready for globalization. DW-TV: What are the pros and cons of a family business? Patrick Adenauer: The pro is that they have a close relationship to their employees and to their customers; they know their products; they can change their production line very quickly. It's very state of the art to lead companies, they're not stock listed, they do not need short-term oriented business models; they do not have to answer questions from analysts who have no idea about the industry. The con is that if they need more capital for growth, then they need the stock market or they have problems in the family. Inheritance can be difficult. DW-TV: How are these firms coping with the global financial crisis right now? Patrick Adenauer: They're well-prepared, although some of them have problems, especially shorter-term oriented companies like car manufacturer suppliers or logistical companies. Others are feeling the crisis but can cope with it thanks to good equity ratios and long-lasting busines models. It won't be easy, but German family businesses are well-prepared. DW-TV: For those caught up in the maelstrom, we've seen the government thinking about bail-out packages for the car industry, for banks, and so on: What can the government do to help family businesses make it through? Patrick Adenauer: It shouldn't just concentrate on the big figures. It should do what it can to help medium-sized family businesses, which are responsible for job growth and the most apprenticeships in Germany. It should not go and give money to business models which are out of date - it should do what it can for a change in the production of smaller businesses. DW-TV: Many family businesses tend to shy away from the stock markets. In the light of current developments, is that the best approach? Patrick Adenauer: I think most family business try to avoid a listing on the stock market, if they can, in order to be less short-term oriented than the bigger companies. (Interview: Heather DeLisle)

DW-World | December 23, 2008

Tags:. .familyowned. .dwtv. .logistical. .workforce. .inheritance