Family businesses poised to overcome pandemic and EU exit

For the 3rd year running, Mazars has sponsored Family Business United’s, Family Business Survey. The survey aims to reveal a range of insights into the everyday challenges faced by UK family businesses and their aims for the future.

To read the survey, please click here

2020 has been a year no one could have predicted or prepared for, let alone family businesses. The global Covid-19 pandemic affected us all in one way or another, however, for family firms, they have had to learn and adapt their business models to survive. Family businesses have shown great resilience during this time and continue to work hard to make a difference, however, 2020 has presented business owners with years of future uncertainty.

With this in mind, it’s unsurprising that profitability and sustainability are a key concern, with 36% citing this as a major issue for their business. All family firms will be keeping a close eye on credit control and which steps to take, but regardless of experience and multi-generational input, it does not guarantee long term sustainability.

Other issues that concerned family businesses included regulation, red tape and legislation along with concerns about supply chains, the changing face of the high street and consumer trends in the retail sector and rising costs of labour and raw materials. With these changing environments, it means for most family businesses, the general running of the business has taken centre stage.

However, there is positivity for the future as 37% of family firms expect more than 20% growth over the next three years and 24% of family businesses are more optimistic about their future business prospects. As family businesses evolve and grow,planning for the future is essential and it's important to find the right type of leadership and skills so the business can continue to move forward and overcome any challenges faced.

Other findings from this years family business survey included:

• 17% do not expect the next generation to take over The economic climate is the biggest risk to long term family business sustainability
• 30% of family business have been the victim of a cyber attack
• Integrity, trust and quality are core family business values

Commenting on this year’s survey, Paul Andrews, Founder and CEO of Family Business United remarked that “Family firms are resilient and those that react and adapt to the challenges they face will give themselves the best opportunities to survive and flourish”. This is evident when looking back at 2020 and what businesses have faced.

Natalie Wright, Head of UK Family Business and Director of Financial Planning, Mazars UK also commented, saying “Family businesses are often driven by different motivations than other kinds of businesses. At their core, they are built upon strong values, and they are often working towards creating a long-term legacy rather than simply short-term profitability. These attitudes are woven into the fabric of many family companies so, when they’re faced with challenges of the kind we’re seeing today, they are uniquely well-placed to think beyond the immediate future and work strategically towards ensuring the continued resilience of their business. This is a very challenging period for all companies, but we have every confidence that the inherent values and drivers of family businesses will stand them in good stead for the future, and we are proud to support them during every step of their journey”. 

Get in touch

If you have any questions about the family business survey, please don’t hesitate to fill in the form below and Natalie or a member of the team will be in touch. 

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