IIC Fosters Longevity of Family Businesses across Latin America and the Caribbean

10/07/2013

Training workshop for IIC clients on corporate governance draws participants from nine countries

Lima, Peru, October 7, 2013 — The Inter-American Investment Corporation (IIC) has helped 15 small and medium-sized enterprises (SMEs) from nine countries across Latin America and the Caribbean boost their chances for long-term survival through a three-day corporate governance workshop on succession planning and improving strategic decision-making processes. The training session was held in Lima, Peru exclusively for family-owned SME clients of the IIC.

Aiding the succession process of SMEs is at the center of the IIC’s governance efforts as only three percent of family businesses worldwide survive beyond the third generation. The IIC has been working to promote good practices in corporate governance for six years, and with more depth since 2011, when it signed the Corporate Governance Development Framework along with 30 other development finance institutions.

Speaking at the event, Carl Muñana, the IIC’s general manager, highlighted that "as part of our efforts we are integrating the analysis of corporate governance into our own due diligence process for the approval of loan and equity investments, which will allow us to support our clients better and gain a thorough understanding of their needs.”

At the event, renowned international experts from the United States and Korea gave insight into family protocols, governance structures, and strategies for successful family businesses. Presenters showcased success stories and lessons learned from succession processes at family-owned Korean companies.

Hee Kwon Park, Korean ambassador to Peru, highlighted the importance of implementing good governance practices for sustainable development of family-owned SMEs and reiterated the support of the Korean government to family businesses in Latin America and the Caribbean.

Roberto Murchison, CEO of Argentine port operator Grupo Murchison, commented that “the interaction with other family businesses from Latin America was extremely useful and it allowed us to reflect on what our own company is doing with regard to corporate governance.”

IIC corporate governance efforts also include its FINPYME Family Business program, which disseminates good governance practices and puts effective and affordable governance tools and structures in the hands of family-owned businesses. The program organizes governance workshops, trains consultants in the region, promotes relevant research, and offers one-on-one technical assistance to SMEs. Participating companies from the workshop that request additional help from the IIC will be eligible to receive direct technical assistance under the program.

The workshop received financial support from the Korean government through the Korea-IIC SME Development Trust Fund.

About the IIC

The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2012, the IIC approved 73 operations totaling US$378.9 million. Throughout our history, we have approved nearly 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC, visit www.iic.org.

Contact: Rebeca Sanchez de Tagle

Telephone: +1 (202) 623 3636

Email: rebecast@iadb.org