Family matters: The future of family enterprises in the Philippines

Family businesses play a significant role in many economies, including the Philippines. Many of the country’s largest conglomerates are family-controlled, contributing to national growth, employment and long-term investment. Their local knowledge and multi-generational outlook help them adapt to change, while their values influence governance and culture. As the business landscape evolves, these enterprises continue to shape growth, innovation and inclusive development.

- JEROME ANDREW GARCIA

The recently released Global Family Business Report 2025 by KPMG and the STEP Project Global Consortium explores how family enterprises are redefining growth in an era of rapid transformation.

Based on insights from nearly 2,700 family businesses across 80 countries, this report identifies three vital components of long-term success: effective governance and leadership, sustainability as a growth driver and strategic investment through mergers and acquisitions.

Governance that drives growth

The report reveals a clear correlation between governance and performance. Two-thirds of high-performing family businesses have formal boards, and those with well-structured boards are 10 percent more likely to outperform their peers. Beyond structure, diversity emerges as a key indicator of performance, as multigenerational boards with balanced gender representation tend to foster stronger innovation, sustainability and strategic thinking.

A well-composed board blends the experience of founders with the agility and insight of next-generation leaders, allowing strategic direction to evolve without losing sight of core values. For local family enterprises, these findings highlight the importance of formalized governance processes and resilient boards that can guide transitions, incorporate independent perspectives and maintain long-term momentum.

Sustainability as a strategic imperative