LIMA, July 10 – The country’s private sector comprised mostly of family-owned businesses as they accounted for 80 percent of the total, Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IDB) said Tuesday.
Fernando Montenegro, head of operations at MIF/IDB, said in Peru there are 659,000 family-owned businesses of which over 600,000 are micro-enterprises, more than 30,000 are small ones and the rest medium and large enterprises.
At the launch of the Family Business Development Centre implemented by IDB and the Chamber of Commerce of Lima (CCL), Montenegro said that the mortality rate of these enterprises is very high.
“Due to the lack of planning and professionalism, founder dependence and resistance to incorporating strategic partners, only 20 percent of these enterprises survive to the second generation and five percent to the third,” he noted.
-BERNAMA
