What can family enterprises in emerging markets teach us about survival, success and continuity? 

Uncertainty is rarely the first topic to arise at a cocktail party, or the breakfast table, or even the boardroom. If anything, the modern world has been designed to reinforce a sense of perpetual predictability. Those of us fortunate enough to live in affluent societies have learned to expect that light will brighten a dark room at the flip of a switch, clean water will flow with a twist of a faucet, and a few taps on our phones will bring fresh groceries to our doorstep. With so much inconvenience and uncertainty, it is easy to take for granted the many ways invisible institutions and infrastructures – both private and public – that enable such an effortless, on-demand lifestyle, 24/7/365.

It is only once we step outside of the comfort and safety of our advanced economies that we begin to understand how control is just an illusion: a superficial layer of stability masking much deeper structural volatility. In these less predictable environments, we are reminded that uncertainty is the rule rather than the exception. Blackouts are pervasive, potable water is a luxury, grocery shelves are often bare, and it is best to avoid getting into cars with strangers.

Our latest book, The Enduring Enterprise, showcases families from around the world who have thrived for generations under precisely these conditions, and highlights what their survival and success can teach business leaders everywhere. Why, you might wonder, would operating in New Delhi or Lagos have any relevance to some of the world’s most sophisticated businesses in New York or London?

The answer is simple: stability within these privileged environments is evaporating before our very eyes as we enter a New Age of Uncertainty. Polarization is increasing and trust in institutions is declining, a sharp reversal of a global trend that has supported economic development and commercial activity for nearly a century. Consequently, success will require a fundamentally different approach to governance, organizational design, and business strategy.

Family enterprises operating in frontier and emerging economies have developed a unique form of resilience to help them thrive in such turbulent times. In fact, some of the most incredible examples of resilience and innovation in modern corporate history were forged during protracted crises. A common theme among these enterprising families has been the systematic application of a portfolio of seven stabilizing strategies to support resilience and performance in any challenging environment.

Consider the Carvajal family in Cali, Colombia, who offer a powerful example of organizational endurance and the application of the seven stabilizing strategies framework. From its humble beginnings with one printing press in 1904, Carvajal has blossomed into a multifaceted, multinational holding company, weathering decades of civil war, political coups, and narco-terrorism.

Initially, the company, founded by Manuel Carvajal at age 53, a lawyer by profession, started with a weekly newspaper – to disseminate ideas and support ambitions in public service. Recognizing the idle capacity of the printing press, the family diversified into contract printing and leveraged foreign technology to differentiate itself from competitors. Building on the success of these strategies, Carvajal continued to expand in other areas to address needs specific to the Colombian market such as developing specialized packaging for milk to extend its shelf life.

Carvajal persisted with a growth mindset even during the violent period of La Violencia in the 1940s and 1950s. While expanding and diversifying their business during this period, the family established a philanthropic arm to support vulnerable communities. This strong commitment to social responsibility, rooted in the family’s history and commitment to public service, fostered a symbiotic relationship with the community and local government, providing stability in turbulent times.

Through the 1960s and 1970s, Colombia would continue to face political and economic challenges – while Carvajal continued expanding its business enterprise. By applying the concept of modularity, Carvajal nurtured joint ventures across South America and migrated into foreign markets – exemplified by becoming a dominant yellow pages distributor in Latin America.

As military coups erupted through Latin America at various points, the family adapted by simplifying operations as needed during turbulent times. The 1980s similarly brought its own set of challenges from narco-traffickers and wide-spread corruption in Colombia – but the business continued to adapt and thrive, leveraging the family’s strong values and commitment to its community.

In the late 1990s, the Carvajal’s leaders created an investment vehicle separate from their operations to support shareholders meet financial obligations during times when cash flow from the business was limited. This ‘Social Dividend’ formed a private fund providing health insurance, educational support, housing assistance, funds to establish a family office and for other purposes serving family interests. While such services are readily found in advanced economies – this innovative application of a redundancy is a direct response to operating in an environment with limited social safety nets.

By the end of the 20th century, the Carvajal’s family enterprise was in its 5th and 6th generation, maintained multiple business lines generating over $1 Billion (USD) in revenues from operations in fourteen countries and employed over 19,000 people. While Carvajal’s story as an enduring enterprise is indeed remarkable – it is not unique.

Similar examples of family enterprises applying the seven stabilizing strategies can be found across industries and around the world. We feature dozens of these cases throughout the book, including:

• South Korea’s Samsung: A technology giant that has leveraged decades of government partnership and protection to drive global commercial success and domestic economic development.
• Syria’s Baalbaki family: A business dynasty that migrated to Lebanon with virtually nothing after a political coup, then rebuilt their industrial empire.
• India’s Tata Group: A global conglomerate that has thrived by leveraging diversity throughout its expansive portfolio of operating companies for over 150 years.

Leaders in advanced economies have the most to learn from these enduring enterprises—in particular how to thrive in all seasons. Many of them have only ever operated in the bountiful spring or summer, in the fairest of weather. Under these favorable conditions, think of the ideas in the book as an early warning system—like moving to Canada in July and first learning about cold-weather gear like base layers and “toques.” For other leaders, whose environments resemble more of an autumn transition, as the days get shorter and the nights grow colder, these strategies can serve as pragmatic reminders to keep the firewood piled high. For those enduring the darkest depths of winter—extended periods of scarcity and adversity—these strategies can be leveraged to stimulate innovative problem solving and provide a ray of hope that spring will someday return.

To thrive in all seasons, we need to anticipate and plan for periods of inevitable change. We must prepare our businesses, our ownership, our families, and ourselves to navigate with confidence through both fair and stormy weather. By planning both for good times and bad, businesses everywhere can better prepare for and capitalize on the challenges and opportunities that will inevitably arise as we enter the New Age of Uncertainty that lies ahead.