As MCG celebrates 75 years of activity in demanding and diverse industrial markets, its family ownership stands out as one of the key factors behind its success. In Revista M, MCG’s corporate magazine, we wanted to explore the concept of family businesses and how this type of company plays an important role in Portugal’s business landscape.
We spoke with the Family Business Association, represented by José Germano de Sousa, a renowned clinical pathologist (O.M.) by profession and president of the association, who kindly showed us how the association supports the day-to-day operations of such organisations.
“It is with great pleasure that I accept the invitation for this conversation, especially as part of MCG’s 75th Anniversary celebrations. Family businesses play a crucial role in the Portuguese business landscape, and it is essential to highlight their relevance and the challenges they face,” reinforces José Germano de Sousa before framing the national panorama of family businesses.
How do family businesses stand today in the Portuguese business landscape, and what is their importance?
“Family businesses represent about 70% to 80% of all companies in Portugal, employing approximately 50% of the workforce and contributing around do PIB nacional. These companies are fundamental pillars of our economy, passing down legacies of excellence. Family businesses are the model of excellence I believe in for Portugal—they are, in fact, the identity of Portugal.”
Are there competitive advantages in a family business compared to other business structures?
“From our experience, family businesses tend to have the most solid balance sheets. They usually have a long-term vision, manage for the generations and not for the quarter, have a solid business culture, and show greater resilience during times of crisis. These characteristics allow them to face challenges with a stability that is not always seen in other business structures.”
So, can we say that it’s possible to learn from older family businesses in terms of resilience and adaptability?
“Absolutely. Centenarian family businesses show that the ability to adapt to market changes, maintain solid values, and have a long-term vision are essential for longevity and continued success.”
What are the main challenges family businesses face?
“The main challenges revolve around managing generational succession, family governance issues, and adapting to political and economic cycles that are becoming increasingly shorter. Neglecting succession can compromise the company’s future…”
What future trends might impact family businesses in Portugal?
“Trends such as digitalisation, sustainability, and globalisation will have a significant impact. Family businesses that manage to integrate these dimensions into their strategies will be better positioned to face future challenges.”
How do you see the role of innovation in family businesses, especially in industrial sectors like MCG’s?
“My Innovation is essential for the sustainability and growth of family businesses. In the industrial sector, adopting new technologies and innovative practices is crucial to maintaining competitiveness and responding to market demands.”
How does the Family Business Association support these companies?
“The Family Business Association provides support at several levels. Among the main forms of support, I would highlight the provision of diverse training—often free for members—and also the organisation and promotion of private meetings between families and specialised consultants to help manage specific challenges.”
What advice would you give to the new generation now taking on responsibilities in a family business?
“I recommend preparing adequately, acquiring relevant training and experience, and promoting open communication with previous generations. Preserving and building on the legacy is essential for the company’s sustainability and continued success, requiring a careful balance between tradition and innovation.”
And what message would you leave for family businesses celebrating major milestones, such as MCG’s 75th anniversary?
“Celebrating 75 years is a remarkable achievement and deserves recognition. It is a testament to resilience, adaptability, and a commitment to excellence. May this milestone serve as encouragement to continue innovating and contributing to Portugal’s economic and social development.”
Please read the full interview in issue nº 11 of MCG M Magazine:
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