Small and medium-sized enterprises (SMEs) in Turkey face “institutionalization struggles” because of family disputes, and particularly because favoring male children hampers their longevity, according to the country’s top business representative.

SMEs constitute a substantial section of most national economies, and most of them are established as family businesses, with roots in one person and their close circle, mostly their family, said Rifat Hisarcıklıoğlu, the chairman of the Turkish Union of Chambers and Commodity Exchanges (TOBB).

“Family businesses are, of course, the backbone of economies. Three quarters of companies in the world are still family companies. However, barely 30 percent of family businesses are able to be transferred to a second generation, while only 12 percent of them make it to a third generation,” Hisarcıklıoğlu added.