Mike Varney
Partner at Crowe LLP (USA)
“It is vital to have a clear risk ranking, an understanding of your critical suppliers, and enough process around those suppliers to monitor for potential disruptions ...
Read more
Nigel Bostock
Chief Executive, Crowe UK
“The COVID-19 crisis provided the final ingredient that has led to a perfect storm. It’s come on top of the risk of economic downturn, Brexit, US-China trade-wars ...
Read more
Optional eyebrow
Optional eyebrow
“It is vital to have a clear risk ranking, an understanding of your critical suppliers, and enough process around those suppliers to monitor for potential disruptions and then be able to respond proactively. We have been helping customers with managing their supplier base. We have been asking: how much more engaged are you with your suppliers in order to understand what’s going on? The COVID-19 crisis has woken up a number of industry players and I believe we are starting to see more formalization in how they manage sourcing arrangements. Another critical element here is not only managing first-tier arrangements, but also having an awareness of your suppliers’ suppliers and how that might impact the delivery of your products.”
Partner at Crowe LLP (USA)
Mike
Varney
Chief Executive, Crowe UK
Nigel
Bostock
“The COVID-19 crisis provided the final ingredient that has led to a perfect storm. It’s come on top of the risk of economic downturn, Brexit, US-China trade-wars, increased regulation, tensions continuing in the Middle East, and signs of ‘slowbalization’ (and how global trade will be impacted by this now and into the future). There are, however, positives for business to take from these events. Increased globalization and economic growth will return, but those who will prosper most from the supply chain revolution will do so by emerging stronger from the crisis with an adaptable and resilient mindset. Now is the time for making bold decisions that will have lasting value, driven not only by lessons learnt from the crisis management of COVID-19, but also by other events that have created the perfect storm. Businesses that adopt a wider and more diverse supply chain will find themselves adapting more effectively to regulatory change. There should be clearer visibility of their entire supply chain to seize opportunities, address challenges, and be effective in proactively managing all aspects of third-party risk. Businesses should be better equipped to act decisively and quickly to solve supply chain problems and be pioneers of technological advancement and innovative thinking in their industry. There should be a mindset to evolve working practices continually. Furthermore, I believe delivering an effective environmental, social and governance (ESG) agenda as part of the business model will be an increasingly key feature of future success.”
Viewpoints from Crowe
Read more
There are 5.2 million family-owned businesses in the UK, making up 86.2 percent of the total, according to IFB...
National Head of Private Clients, Crowe UK
Mike Varney
Optional eyebrow
Read more
In France, family businesses range from solo-entrepreneur to groups worth billions of US dollars. Overall, they sailed...
Partner ACA, International Tax Liaison Partner, Crowe Global
Nigel Bostock
Optional eyebrow
There are 5.2 million family-owned businesses in the UK, making up 86.2 percent of the total, according to IFB Research Foundation from 2021. The majority of family businesses in the UK have fewer than 10 employees. Diversity is also notably less in family businesses, which according to BEIS saw only 5.6 percent identifying a minority ethnic group leader as opposed to 10.2 percent in non-family counterparts. Although this lack of diversity and regional focus would not tend to be an issue with first-generation businesses operating in popular UK sectors, introducing non-family members to provide critical thinking is an important challenge for organizations as they grow. For the family business with longevity, legacy remains important, and having consistent values is vital. We have helped families to develop a family charter to set boundaries and rules of operation, both in terms of how the family behaves, but also in terms of how they interact with non-family members in the business. The impact of COVID-19 on family businesses is far from certain. The pandemic has hit sectors that have a high proportion of family business operators – for example retail and hospitality – and although government support has helped keep many going, a day of reckoning comes as debts start to become payable. Interest rates remain low, however, and the economy is recovering well, so one would hope that our nation of family businesses, now and into the future, will go from strength to strength. You can read more on Crowe UK’s insight into family-owned businesses here.
In France, family businesses range from solo-entrepreneur to groups worth billions of US dollars. Overall, they sailed through the crises triggered by the pandemic with no or little damage, some of them even taking advantages of new opportunities. What sets them apart in the business world could be summarised in three words: focus; tradition; and agility. Focus: they do business for themselves, so their vision is not impaired by shareholders’ concerns. Corporate identity is strong, each employee can be seen as a building block to success and feels empowered and motivated to reach this common goal, driving efficiency and commitment. Tradition: the transmission of a business from generation to generation makes it implicitly legitimate and trustworthy. In a society that seeks meanings, such heritage is very powerful. Agility: those that are successful keep away from “doing things the way it was always done” and use their family heritage to federate around their vision so that, when facing disruption, they can rethink business strategy and implement the necessary changes at record speed and with the support of all their stakeholders.
Viewpoints from Crowe
Title excepteur sint occaecat cupidatat
Nigel
Bostock
Title excepteur sint occaecat cupidatat
Mike
Varney