Papua New Guinea Family Business as Contributors to the Economy

PricewaterhouseCoopers, a global professional services network and one of the Big Four accounting firms, or known as PwC, released its 12^th Family Business Survey that highlighted Papua New Guinea. Papua New Guinea Report examines the current state of family-owned businesses in Papua New Guinea (PNG), highlighting both their resilience and the significant challenges they face in a volatile economic environment.

Conducted between April and June 2025, the survey positions family businesses as essential contributors to Papua New Guinea economy, employment, and community development. Despite economic instability, these businesses continue to play a critical role in sustaining growth and supporting local communities.

The report shows that 50% of PNG family businesses recorded sales growth in the previous financial year, although this remains below the global average of 73%. Interestingly, businesses that did achieve growth often performed strongly, with 34% experiencing double-digit growth compared to 25% globally. This suggests a polarized business landscape where some firms thrive aggressively while many others struggle with stagnation or decline.

Several external factors contributed to cautious optimism among business owners. The advancement of major resource projects such as Papua LNG and the reopening of the Porgera gold mine created expectations of new economic opportunities. Strong agricultural commodity prices and improved foreign currency availability also helped boost confidence. However, businesses still faced serious pressures, including inflation, currency depreciation, supply chain disruptions, and the lingering impact of the January 2024 civil unrest known as “Black Wednesday,” which damaged infrastructure and disrupted commercial activity.

One of the report’s most notable findings is the strong trust and reputation associated with family businesses in PNG. Around 71% of respondents believe family businesses are more trusted than non-family businesses, while 87% consider maintaining reputation to be extremely important. This strong community connection is seen as a major competitive advantage.

At the same time, the survey identifies major weaknesses in innovation, governance, and sustainability practices. Many businesses rely heavily on internal funding and show limited investment in digital technologies such as AI, automation, and advanced analytics. Governance structures also remain underdeveloped, with 63% of boards consisting solely of family members and limited diversity in age, gender, and industry expertise. Sustainability initiatives are often deprioritized due to immediate financial pressures and limited awareness.

Overall, the report concludes that PNG family businesses possess strong resilience and adaptability, but future growth will depend on improving governance, embracing innovation, investing in technology, and developing long-term sustainability strategies.

What are the opportunities for collaboration with other family businesses around the world especially the neighboring countries or region?