Rebecca Durrant Partner
National Head of Private Clients, Crowe UK
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...
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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.
National Head of Private Clients, Crowe UK
Rebecca Durrant Partner
Partner ACA, International Tax Liaison Partner, Crowe Global
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
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In France, family businesses range from solo-entrepreneur to groups worth billions of US dollars. Overall, they sailed through the crises triggered by...
Partner ACA, International Tax Liaison Partner, Crowe Global
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While across Southeast Asia, India and Latin America, family businesses make up 70 percent of companies with revenues greater than US$1 billion...
International Liaison Partner, Crowe UAE
Zayd Khalid Maniar
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Marie-Fleur Bouillon-Bonte
International Liaison Partner, Crowe UAE
Zayd Khalid Maniar
While across Southeast Asia, India and Latin America, family businesses make up 70 percent of companies with revenues greater than US$1 billion, in the Middle East, this figure is far higher. With an outlook of a diversified tax-based economy, family businesses continue to benefit from government initiatives to both safeguard and support them. For example, in August 2020, Dubai issued a new law regulating family businesses to help protect wealth. This spurred Foreign Direct Investment by families and boosted contribution to the country's economic and social development. Despite these robust foundations, according to Martin Roll "only about 13 percent of family businesses are passed down successfully to a third generation." The firm where I am a partner today was founded in 1981 by my father, who was a sole practitioner. It’s all about playing the long game. There isn’t a business in the world that is not concerned about long-term survival. And if they aren’t concerned, they should be. Most large organisations close or fail, because they were not able to keep up. With changes in, but not limited to consumer preferences, go-to-market approaches and digital transformation. Why then should family businesses be any different. I agree with Sunil K. Dalal’s approach to tackle that disruption head-on. In conclusion, for family businesses to evolve “they need to hold onto their core values but let go of the past.” At Crowe, our experienced advisers understand family business and are here to bring you lasting value – for generations to come.
Marie-Fleur Bouillon-Bonte
National Head of Private Clients, Crowe UK
Rebecca Durrant Partner
Partner ACA, International Tax Liaison Partner, Crowe Global
Marie-Fleur Bouillon-Bonte
International Liaison Partner, Crowe UAE
Zayd Khalid Maniar
