IIC and BAC Honduras help strengthen family businesses through good governance workshops

03/02/2011

Tegucigalpa, Honduras - On March 2 and 3, 2011, the Inter-American Investment Corporation (IIC) and BAC Honduras joined forces to offer a workshop on good governance in family businesses.

The workshop addressed the three main challenges family businesses face: developing business ownership responsibly and jointly, preparing for succession, and keeping up an entrepreneurial spirit. Spain’s IESE Business School (University of Navarra), the consulting firm IKEI, and Colombia’s INALDE business school facilitated the workshop. Similar workshops sponsored by the IIC through the Government of Spain are being held in San José (Costa Rica) and San Salvador (El Salvador) as part of a regionwide effort. The IIC has already offered activities to promote family business governance in Colombia, Jamaica, Panama, and Trinidad and Tobago.

"The IIC knows first hand that improving the corporate governance of companies in its portfolio—most of which are family businesses—is vital to their health. All family businesses involve three components: business, family, and ownership. Communication among these components is key. This highly interactive and participatory workshop seeks to provide entrepreneurs with the necessary tools to reflect on and begin to make decisions towards better corporate governance. Participants are pleasantly surprised to find that the same values families teach their children, such as tolerance, honesty, and hard work, are key to business durability," stated Jacques Rogozinski, General Manager of the IIC.

According to Carlos Handal, Deputy Regional Manager at BAC Honduras, "One of our institution’s key initiatives is to promote family business governance, together with the IIC, throughout 2011. Family-owned companies are instrumental to our business, and one of their weaknesses is their internal governance structure. Unfortunately, we see companies disappearing when they begin the succession process, or failing due to issues among family members, more often than we would like. We hope that this workshop will raise businesses’ awareness of the importance of planning for succession and providing appropriate training to the members that will be entrusted with working at the company or maintaining the founder’s entrepreneurial spirit when the time of succession comes."

About BAC Honduras

Banco Honduras is a member of the BAC|CREDOMATIC financial network established more than 50 years ago. It mainly offers commercial, corporate, and consumer banking services, including a significant credit card operation. A solid and leading institution in Central America, BAC|CREDOMATIC employs more than 10,000 people in the region. On December 9, 2010, BAC|CREDOMATIC was acquired by Banco de Bogotá, a member of Grupo Aval. Grupo Aval is Colombia’s largest financial group, with nearly 30% market share.

About the IIC

The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2010, the IIC reached US$1.4 billion in assets and approved forty-nine operations channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int

Contact: Amparo de San José Riestra

Telephone: (202) 623-3921

Email: amparori@iadb.org