SET Chairman Reveals Success Formula for Thai Family Businesses with 6C Factors, Emphasizes “Good Structure is Half the Battle”

The Stock Exchange of Thailand President reveals the formula for success for Thai family businesses in a world of change with the 6C main factors, indicating the importance of doing business as “transparency”, believing that “a good structure is more than half the battle”

Today, October 17, 2567, the Financial Banking Journal organized a seminar on the topic "The Successor: Sustaining Family Legacy. " Professor Kitipong Urapippatpong, Chairman of the Stock Exchange of Thailand, delivered a keynote address on the topic "How To Grow Exponentially: Building a Family Business for Expansionate Growth. "

Successful family business succession requires all family members to agree. There are 3 main factors in creating growth for Thai family businesses:

1. Creating growth for family assets

2. Utilizing the abilities of personnel both within and outside the family and

3. Family and organizational unity

For the success formula of Thai family businesses in a changing world, there are 6C main factors:

1. Corporate Structure and Shareholding Structure: "A good structure is half the battle" or "Structure in a friend" is what enables organizational growth and helps resolve various family-related issues, including shareholding, company regulations, etc.

2. Compensation/Benefits: This is a major issue that can easily lead to conflict, so a clear agreement is necessary.

3. COMMUNICATION. Most problems often arise from families not communicating with each other, or communicating only through commands, as well as a lack of mutual listening.

4. Conflict Response: Managing and resolving various conflicts within the family.

5. CARE & COMPASSION: Compassion and kindness are essential for a successful and sustainable business, aligning with Buddhist principles used as guidelines for family governance, such as the Four Sublime States (Brahma Vihara 4) or the Four Principles of Social Materialism.

6. CHANGE. Adapting to the changing world, even before problems arise, will lead to better success in managing a family business compared to starting after problems have already occurred.

Professor Emeritus Kittipong said that if asked how to make family businesses in Thailand last for a long time, that is the importance of family businesses. In Thailand, 57% of registered companies in Thailand are family businesses and more than 74% are newly registered companies in the stock market. However, the number of family businesses that are over 100 years old in Thailand is still not much. Moreover, family businesses have financial capital, important human resources, and long-standing trademarks that help promote national development.

Family businesses have the opportunity to grow through a Merger & Partnership (M&P) partnership, which has the following key characteristics:

1. Flexibility reduces risk.

2. Able to use and share each company's existing resources effectively.

3. Solve the problem of different cultures of the two organizations.

4. Able to develop strategies based on each company's advantages and expertise.

5. Expand the business in terms of marketing.

6. There is an opportunity to resolve the difficulties in trade competition law.

7. There is maintenance of administrative and decision-making power for each organization.

8. It can save investment for both parties.

9. Make both partner organizations learn how to work together and share knowledge and experiences with each other.

10. Selling or exiting a business is easier.

“Regardless of the type of business, the most important factor is ‘transparency.’ If the structure is good, accounting is well-maintained, and benefits are distributed equitably, the business will succeed. As the saying goes, ‘A good structure is half the battle.’” said Professor Emeritus Kitipong.

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