Why Many Family Businesses In Cameroon Do Not Survive Their Founders (Part 12)

Prominent Cameroonian Businessman Admits That The Issue Of Succession In The Management Of Family Businesses, Remains A Big Problem

Says The Issue Is Still A Problem Even In Europe, Though The Situation There Is Much Better Than In Cameron And Other African Countries.

In France The Gov’t Is Very Concerned When The Founder Of A Big Family Business Dies Without Having Groomed A Successor (Manager), While In Cameroon The Gov’t Appears Not To Bother

Philippe TAGNE NOUBISSI, the Cameroonian born Founder of the popular Family Business, DOVV, which is a chain of supermarkets in the country, has admitted that the issue of succession in the management of Family Businesses in Cameroon, like in other African countries in general, remains a big problem. But he quickly adds that there is no question that it is very important or necessary for the Founder of a Family Business to groom his or her successor in the management of the business, to ensure the survival of the business when he will no longer be around.

It should be noted that experts do not only look at death as the thing that can cause the absence of a Founder of a Family Business. They also point out that an accident as well as a serious sickness can incapacitate the Founder of Family Business, and thus puts him out of the management of the business. In a case where a person is incapacitated by an accident, it comes or happens so suddenly.

Meanwhile the President/ Director General (PDG) of DOVV Supermarkets, Philippe Tagne Noubissi  made the above assertion while a guest in one of the flagship programmes of Canal 2 International (Tv) , recently.  It is worthy of note that the Moderator of the Programme, Rodrigue Tonge, raised this serious issue  that often happens in Cameroon, whereby when the Founder of a Family Business dies, the children or some of the children, jump in and start grabbing and selling assets of the enterprise, left behind by their departed father. And within a short period, the once prosperous business that offered jobs to a number of Cameroonians, as well as put some money in the coffer of the State through the payment of taxes, would be gone. As the journalist rightly remarked, this unfortunate situation often happen because the Founders of many Family Businesses in Cameroon, pass away without having groomed any child or any close family person, to take over the management of  the business when he is gone.

 “No Body Is Immortal, But – – – “

When the Canal 2 journalist asked the PDG of DOVV Supermarkets, Philippe Tagne Noubissi, if he was already grooming one of his children or a close family member as the future Manager of the DOVV Supermarkets, the business magnate was seemingly rather embarrassed with the question. He first hesitated to give a response, and even when he did try to respond, he was not clear.  He however said that nobody is immortal, for all human beings are mortals as they will all one day pass away.

But without talking about his case, the PDG of DOVV Supermarkets, as aforementioned, admitted that the issue of grooming successors in the management of Family Businesses remains a big problem in Cameroon, though it is really a necessity. He however did not say why many Cameroonian Founders of Family Businesses are reluctant or unwilling to groom their successors in the management of the businesses, when they see for themselves the damages that are caused to other Family Businesses, when the Founders die without having left the management of the businesses in the hands of persons they groomed or trained on the job, to eventually take over the management of the businesses.

 Still A Problem In Europe, Though The Europeans Are Advanced

The PDG of DOVV Supermarkets, Philippe Tagne Noubissi, said that though Europeans are advanced as compared to Africans on the grooming or training of successors in the management of Family Businesses, it however remains a big problem too in Europe. He said a study that was carried out in Europe show that, only 40 % of Founders of Family Businesses do train on the job their successors in the management of the Family Businesses. This means that as many as 60 % of Europeans that are Founders of Family Businesses, do pass away without leaving the businesses in the hands of managers  they groomed to succeed them, and so problems do come up.

However Tagne Noubissi explained that the one thing with the situation in France for example, is that   when the Founder, especially of a big Family Business passes away, without having left behind a management that can ensure the continuity of the business, the Government becomes concern with the situation. The Government and gets closer to the business to ensure that a good management team is set up to run the business. He explained that the French Government in those cases does not interfere in the business or in the family. But he asserted that just the fact that family members are aware that the Government is closely monitoring the situation, make them and others around them to avoid trying to play games with the Family Business or assets left behind by the departed Founder.

Tagne Noubissi, also said that in France today, there is an institution that is working to encourage children of business magnates to get interested in the management of their different Family Businesses. He said the institution further helps to give some training to the children that are interested, on the management of their different types of Family Businesses. It looks like in France the problem is not only with some Founders of big Family Businesses, that do not groom some of their children as successors in the management of the Family Businesses, but also the fact that many children of these business magnates are only interested in the wealth of their parents, and not in working in the businesses.

Many People As Well As The State, Benefit From A Family Business

The PDG of DOVV Supermarkets, Tagne Noubissi, very much appreciated the concern that the French Government shows, when the Founder of a Family Business passes away, without leaving behind a solid or precise management team to ensure the survival or continuity of the business. He stated that it is not only the family members of a Family Business that benefit from the business, as many other persons as well as the State benefits from the business, and thus are all stake folders in the business. He asserted that when somebody creates a business, it ceases to be his own alone as other stakeholders like workers get involved.

The Founder of the Family Business, DOVV Supermarkets, in looking at his company for example, pointed out that the business employs many Cameroonians, and also pays taxes to the State.  He said the workers and the State are thus also stakeholders in the business.  Tagne Noubissi explained that at the end of the day, workers of DOVV Supermarkets benefit by getting their salaries which enable them to take care of themselves and their families, the State benefits by the enterprise’s payment of taxes, and that the money contributes to enable the Government to carryout development projects and do other things, while the Founder of the Family Business and his family benefit from profits made from the business. He added that contractors like suppliers of DOVV Supermarkets among others, are also beneficiaries, and thus stakeholders in the business. He noted that DOVV Supermarkets thus also contribute to the growth of the Cameroon economy.

The PDG  of DOVV Supermarkets thus asserted that when a big Family Business in particular does not survive its Founder, not only is it not good for the family, but it is also not good for the country, as many people, including the employees, contractors and the  State  are also  affected one way or the other  by the crash of the business.