Family businesses and the UK economy – key statistics

New research from Credit Suisse has provided an interesting insight into the role family-run enterprises have in the UK economy.

The report shows that not only are they key to supporting the economy, but they tend to be undervalued and neglected by policy makers.

Key Findings

• Family businesses are more common in Scotland than in England.
• UK has the lowest proportion of family-owned enterprises in Western Europe (8%), compared to Germany (36%) and France (30%).
• Most family businesses in the UK are just one generation old.
• Female entrepreneurship is higher than the G8 average.
• Most ethnic-minority businesses (66%) are family owned – with minorities responsible for 10% of family business start-ups.
• Just 16% of medium-sized family companies have been run by the same family for 3 or more generations.
• A surprising 42% of UK entrepreneurs have no succession planning in place for when they retire.

Head of UK research at Credit Suisse Private Banking, Michael O’Sullivan, commented:

“Our research highlights the importance of family businesses in supporting the UK economy. Although this sector has been largely neglected by UK policy, the importance of these businesses in other countries suggests they could provide a useful focus for UK policy makers on enterprise strategy and regional development. The credit crisis highlights the importance of a strategy based on long-term economic development, of which regional economies and family businesses play a vital part.”