Abdelkader Boukhriss: “The transfer of a family business cannot be improvised”

The sustainability of family businesses has become a strategic issue in Morocco, given their number and economic weight. Caught between risks of fragmentation and opportunities for long-term continuity, their future largely depends on their ability to anticipate and structure the transfer of leadership from one generation to the next.

Abdelkader Boukhriss analyzes the challenges and levers needed to ensure their continuity and strengthen their resilience.

Is there a precise definition of a family business?

There is no universal definition of a family business. However, researchers and practitioners generally agree on defining a family business based on three criteria.

The first is ownership: the company’s capital is held mostly or entirely by a family.

The second is governance: the company is managed by one or more family members, and strategic decisions are made by the family.

The third criterion, which is the most important, concerns continuity or succession—meaning that the business is designed with the intention of being passed on to future generations.

In other words, a family business is not merely a company owned by a family; it is a business built to last and to transmit entrepreneurial heritage and values across generations.

What do we know about this population of companies and their weight in the national economy?

In Morocco, family businesses are present throughout the economy, yet paradoxically they remain understudied. Unfortunately, there is still a lack of consolidated data and sufficiently in-depth studies on these companies.

Even without precise statistics, we can say with certainty that family businesses play a central role in the Moroccan economy.

More than 95% of the economic fabric consists of SMEs and very small enterprises, the majority of which are family-owned.

Recent research in many countries shows that family businesses account for nearly 70% of employment.

We still lack an accurate mapping of their contribution to GDP, employment, or investment, but these companies are present in all sectors of activity and across all regions of the Kingdom.

This is precisely why it has become important today to better study, understand, and support these businesses, particularly on issues of governance, succession, and sustainability.

In this respect, closer ties are needed between the academic world and the family business ecosystem to enrich doctoral research work.

What makes this category of companies unique?

The specificity of family businesses lies in the fact that they operate at the intersection of two logics: the logic of business and the logic of family.

On the one hand, the company pursues economic objectives like any organization—growth, profitability, investment, and value creation.

On the other hand, the family business also carries non-financial objectives: preserving family unity, transmitting values, maintaining an identity, and ensuring the continuity of the entrepreneurial project across generations.

This duality of objectives lies at the heart of how family businesses function. It can be a major strength, as it often fosters a long-term vision and strong resilience. But it can also create tensions when trade-offs must be made between economic and family concerns.

In family businesses, this dimension is often expressed through what is called affectio familiae—the desire of family members to pursue a collective project embodied by the company.

This family cohesion complements what corporate law refers to as affectio societatis—the willingness of partners to collaborate around a shared economic project.

When this balance works, it becomes a real source of strength for the company. But when it weakens—especially during generational transitions—it can become a source of tension.

This is why family businesses require adapted governance structures capable of organizing, over the long term, the relationship between the family, ownership, and the business.

Most family businesses worldwide do not survive beyond the third generation. How is this reflected in Morocco?

Internationally, statistics show that only a minority of family businesses manage to survive into the third generation—roughly one in ten.

In Morocco, we are currently in a particularly interesting phase. Many companies founded in the 1970s, 1980s, or 1990s are reaching a pivotal moment: the transfer to the second or third generation.

In our experience, the difficulties rarely stem from economic performance.

They mostly arise because succession has not been sufficiently prepared.

Business leaders are often highly focused on developing their activities on a day-to-day basis—consolidating operations and ensuring growth—while succession planning is postponed.

In some cases, there may also be a reluctance to envision handing over control.

Yet the transfer of a family business cannot be improvised. It must be anticipated and organized over several years.

Based on your experience, what pitfalls should be avoided and what best practices should be followed?

The first pitfall is failing to anticipate succession. Very often, this is not due to a lack of willingness, but simply because leaders are absorbed by daily management.

The second pitfall is confusion between the family and business spheres. In a family business, emotional relationships can sometimes influence economic decisions.

To ensure the company’s sustainability, it is important to establish communication channels among family members and gradually implement appropriate governance tools.

This may include, for example, formalizing a family charter, structuring shareholder governance, or integrating external directors into decision-making bodies.

An external perspective often helps ease tensions and brings a more objective approach to decision-making.

You have just concluded the first edition of a certification program dedicated to family businesses. What does it involve?

This program was born out of a very concrete observation from our consulting practice. Our firm, with 95 years of experience, has supported family businesses for decades, particularly on issues of succession, transmission, restructuring, and estate planning.

We have often been called upon in situations where succession became difficult—or even blocked—simply because it had not been prepared early enough.

The idea behind this executive certificate is therefore to support business leaders and families on the key issues that shape long-term sustainability: governance, succession, family vision, and strategy.

We developed this program with IÉSEG School of Management, combining their academic expertise with our hands-on experience in the family business ecosystem.

One of the program’s distinguishing features is that multiple members of the same family participate together.

The goal is to encourage intra-family dialogue and enable participants to leave with practical tools to structure governance and prepare for generational transitions.