Succession in family businesses
Family businesses tend to be more successful than other enterprises, but only when succession between generations is carefully managed. Paul Golden takes stock.
Family-run businesses are the bedrock of our economy. According to the IFB Research Foundation’s report, The State of the Nation: The UK Family Business Sector 2019-20, there are more than five million such organisations employing more than 14 million people – half of all private sector employees. In 2018, they contributed £657bn to the UK GDP – 31% of total GDP – and paid £196bn in tax receipts – around a quarter of the government’s total revenue. It’s no surprise then that the Credit Suisse Family 1000: Post the Pandemic report declared that family businesses have been outperforming non-family concerns in every sector (and across the world) since 2006.