Interview with our CEO, Jorge Suárez.

Below is the transcript of the interview that Caja Rural conducted with our CEO, Jorge Suárez, who is also the President of AEFAS, as part of the series “Committed to Asturias”.

We interviewed Jorge Suárez, President of AEFAS, where he discusses the current situation of family businesses in Asturias and how they are facing the current COVID-19 health crisis.

How would you define AEFAS?

“AEFAS is an association of Asturian family businesses and Asturian business families.”

How many members do you currently have? And what do they represent for the Asturian economy?

“Our association has about 60 members who generate approximately 19,000 jobs. This is a significant group of companies whose accumulated turnover is around €3,000 million, a figure that represents more than 12% of the regional GDP.”

What is AEFAS’s goal?

“AEFAS is the voice of Asturian family businesses and its main goal is to contribute to their survival and permanence over time, raising awareness among society and institutions about the importance of family businesses for the structure and future of a territory. Without businesses, you know…”

What objectives do you aim to achieve this year?

“Our main objectives for the next two years are the following:

• Improvement of the Inheritance and Gift Tax situation.
• Improvement of the image of family businesses.
• Strengthening the conditions for our members to share their concerns and improve their understanding of the dynamics specific to family businesses.
• Improvement of public spending efficiency and reduction of bureaucracy.
• Contributing to the growth in size of our companies.
• Joining forces with other associations and groups.”

80% of Spain’s GDP is generated by family businesses. What specific support do these types of companies need?

“Given the significance of their economic contribution, it is appropriate to support all necessary measures to guarantee their continuity over time, as many other countries do. In Asturias, we will see long-standing companies facing difficulties in third and fourth-generation succession processes, as the current configuration of the Inheritance and Gift Tax does not help in these cases.”

It is inevitable not to talk about family business and succession. In general, are Asturian family businesses prepared for this moment? How should they prepare?

“AEFAS is an ideal forum for improving knowledge and preparing business families for these types of situations. I believe that our companies are increasingly better prepared, and although each company is a different case, my recommendation is to intensify internal communication within families. Either within them or through associations like ours, where these types of exchanges are likely to be simpler.

Succession is a critical moment in the trajectory of family businesses, largely due to the lack of systematic communication prior to the death of the person or people in charge. It is difficult for founders or those currently leading to clearly discuss or share with those who will follow how they want or understand things should be when they are no longer there. And it is precisely this lack of communication and interaction among those affected that sometimes leads to subsequent difficulties. That is why sometimes things are put in writing, but in my opinion, it would be better to talk about them more and write them down less.”

What is the strength of family businesses in Asturias? And their weakness?

“The Asturian family business is deeply rooted, precisely because Asturian families and Asturians in general are very attached to our land. This is a quality that, on many occasions, is not sufficiently valued by institutions or other agents. Asturian family businesses are here to stay, and that is a crucial asset in our economic and social fabric.

While we are proud of our land, I miss a greater level of sensitivity towards what is Asturian. Our companies should strive more to understand the Asturian business fabric and realize that here, many times, we do things just as well as elsewhere. It is necessary to stop and think about the importance of hiring Asturian, provided it is reasonable and competitive, of course. To the extent that we think about what is local and those who are local, we will all do better, and I believe that other territories are much more sensitive to this than we are. In short, we must help each other more and have a more positive view of our capabilities.”

What would you say to Asturian family business owners to encourage them to join AEFAS?

“I would tell them that AEFAS is a wonderful association where the relationship among members is very close and sensitive, and that we absolutely must make the collective of family businesses much stronger to improve things in our beloved Asturias.

The solution is not only with the administrations. We have a fundamental role to play together.”

How are Asturian family businesses coping with the COVID-19 crisis?

“Recently, we obtained the conclusions of a survey conducted among our members after the third week of confinement, and the results are devastating:

• Sales and turnover fall by an average of 55%, and 48% of companies lose more than 80% of their activity.

Practically all companies will implement temporary employment adjustments, via ERTES or reduced working hours, affecting an average of 44% of their human resources.

Under current conditions, our companies would be forced into insolvency within an average of 5.4 months.

With these figures in mind, immediate measures are essential to improve the cash positions of our companies in the short term. And these measures must arrive quickly. Speed is an essential condition in the current context. Not implementing measures quickly would be the same as not implementing them at all. And by speed, we mean immediacy. That is, today or tomorrow, not in 3 months. If what is decided in this matter does not reach companies immediately, then such measures will have been useless. And this imperative need for speed is something that the Administration does not seem to understand well, perhaps because they are not used to feeling the pinch from an economic point of view.”

Here is the link to the interview:

https://comprometidosconasturias.com/hoy-hablamos-con-jorge-suarez-presidente-de-la-asociacion-asturiana-de-empresa-familiar/

20/04/2020