Family businesses represent a large part of the national business fabric, but they face increasingly more challenges in an ever-changing reality where technology takes an increasingly dominant role.
Family-owned SMEs in Portugal may be at risk of falling behind their competitors as the economy goes digital, according to a new study by Mastercard.
Together, SMEs represent 99.9% of the Portuguese business sector, the majority of which are small businesses with fewer than 10 employees. Of these, 35% feel well prepared to work in the digital economy.
Among the main challenges faced by small family businesses are the ability to convince family members to select the most suitable digital solutions to modernize the company, a closed mentality to adapt to the new era (31%), uncertainty about the future (29%), and anxiety about the future (29%). . Financial concerns (28%). For those surveyed, the older generation is not very open to trying new things, such as implementing new technologies, systems, or management processes.
The Mastercard study also shows that family businesses were able to quickly adapt to the digital transformation caused by the pandemic, with almost half (44%) already having integrated digital payment solutions, for example. However, one in four (26%) admit they are unsure which digital resources and technologies are best suited for their companies.
The data also shows that “family relationships can pose a challenge in business management and make the modernization of Portuguese family businesses more complex.” According to Mastercard, some employees consider the family business they work for to be closed-minded when it comes to modernizing and trying new things (31%), and older generations are said to be less inclined to want to do so.
“Small businesses are the driving force of our economy, employing more than 78% of the national workforce, and have shown remarkable resilience in difficult times. However, many SMEs, especially family-owned ones, need additional support to thrive in a digital and global economy.” growing.
The study also reveals that family businesses are slightly less optimistic than non-family businesses (52% vs. 58%) about business growth in the next year.
Andrea Hargraves is a contributor to Brytfmonline.com, covering a broad range of topics including news, politics, business, technology, sports, entertainment, and lifestyle. She is committed to delivering clear, accurate, and reader-focused reporting that helps audiences stay informed about current events and emerging developments. Andrea’s work emphasizes useful information, balanced coverage, and stories that matter to everyday readers, making complex topics accessible and relevant to a wide audience.